A peace deal between the US and Iran before next week’s European Central Bank meeting would not derail the case for raising interest rates, Belgium’s central bank governor said.
“If a peace deal is confirmed just before the meeting, it will be part of the discussion. But we won’t know whether it will last or be credible,” Pierre Wunsch told the FT, signalling that he favours a quarter-point increase.
He argued that the discussion among policymakers before they set rates on June 11 “will be quite easy” if the conflict remains unresolved.
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