Member of the European Central Bank (ECB) Governing Council and National Bank of Belgium Governor Pierre Wunsch told Econostream in a statement given on Thursday and published on Monday that he believes that, whenever the institution decides to cut its key interest rate, it will be "reasonable, as the risks on the inflation front are by now quite limited."
Commenting on the timing, Wunsch said that "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 we are going to have to decide on the basis of the information we have whether we cut or we don't cut."
Furthermore, the economist weighed that talking about when and how much to cut the rates is "a reasonable discussion to have and you can decide to start earlier, but then do it at a tempo that's not that high. Or you can wait a bit more and then go faster."
