ECB Governing Council Member: Even if a US-Iran peace agreement is reached, it will not weaken the case for a rate hike

Odaily Planet Daily News, June 3. ECB Governing Council Member Wunsch said that a US-Iran peace agreement reached before next week's ECB meeting will not weaken the rationale for a rate hike. Wunsch said: "If a peace agreement is indeed reached on the eve of the meeting, it will become part of the discussion. But we cannot know whether it will be lasting or credible." He hinted at supporting a 25-basis-point rate hike by the ECB. He believes that if the conflict remains unresolved, the discussion among policymakers before setting rates on June 11 "will be quite easy." If a US-Iran peace agreement is reached, the discussion "might be slightly less easy. But the rationale for a rate hike may still exist, just not as strong." He said: "At some point, we cannot let the market bear everything. We need to take a stance." (FT)