Wunsch calls for gradual ECB policy tightening
Belgian governor stresses risks posed by prolonged negative rates and QE
The eurozone needs a gradual policy normalisation, the National Bank of Belgium’s governor Pierre Wunsch said in a recent interview with Central Banking.
Year-on-year inflation in the bloc surged to a new record high of 5% in December, well over the 2% target. Wunsch stressed the European Central Bank needs to continue making steps towards withdrawing its monetary stimulus programmes, introduced in response to the Covid-19 pandemic.
“What matters is that we move away from an extremely
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