ECB's Wunsch says underlying inflation remains persistent, may need more rate hikes

<p>The European Central Bank may need to raise interest rates further according to ECB Governing Council member Pierre Wunsch, who spoke on Saturday in a radio interview. </p><p>Wunsch said there are signs that price pressures are dissipating, but the ECB's 2% target rate won't be hit before 2025. Given the persistence of inflation:</p><ul><li>

“I’m inclined to say we maybe need to do a little bit more”</li><li>The “idea that we’ll have to come to a pause at a certain point can’t be excluded” he said,. but its too early to talk about stopping hiking completely</li></ul><p>ECB Governing Council member Pierre Wunsch is at the less dovish end of the ECB spectrum. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.