Member of the European Central Bank (ECB) Governing Council and National Bank of Belgium (NBB) Governor Pierre Wunsch told Handelsblatt in an interview published on Tuesday that the initial rate cuts are almost imminent due to nearing inflation targets. However, he advised that a rate cut delay by the Federal Reserve in the United States might influence ECB rate adjustments.
"Barring a sudden shock in the coming months, the first interest rate cut of half a percentage point is almost a done deal. That's the easy part," he told the media.
He insisted on a cautious approach to reducing rates, suggesting a gradual pace to avoid committing quickly to subsequent cuts. "Nevertheless, we should proceed gradually and not too quickly. We should refrain from committing to a second rate cut as early as July,” he mentioned.
