ECB’s Wunsch Says Rate Hike Likely If War Isn’t Over by June

National Bank of Belgium Governor Pierre Wunsch warned that if the conflict is not over by June, outcomes will likely be 'way above our baseline' and would 'warrant some kind of reaction.' This is a hawkish signal that raises the risk of monetary tightening and upward pressure on euro-area yields and financial conditions.

Analysis

National Bank of Belgium Governor Pierre Wunsch warned that if the conflict is not over by June, outcomes will likely be 'way above our baseline' and would 'warrant some kind of reaction.' This is a hawkish signal that raises the risk of monetary tightening and upward pressure on euro-area yields and financial conditions.