ECB’s Wunsch says the risks on inflation are quite limited

Econostream spoke with Wunsch on Thursday but has just published the comments now.

  • There is some value to waiting, but it’s not like by waiting so many days or weeks or months that we will know everything precisely
  • At some point it becomes a tradeoff between the value of continuing to wait and the fact that the economy is not very strong and that inflation momentum is going down
  • I don’t think the risks are that big either way
  • Costs of waiting low because the market is already pricing in cuts
  • The risks on the inflation front are by now quite limited
  • My point is that we’re not going to wait – just to exaggerate – a whole year to have absolute certainty about wages
  • At some point we are going to have to decide on the basis of the information we have whether we cut or we don’t cut

It doesn’t sound like he’s in the camp that wants to wait too long, especially with that comment on inflation. More here.

This article was written by Adam Button at Source