European Central Bank Governing Council Member: Even if a US-Iran peace agreement is reached, it will not weaken the case for raising interest rates

Odaily Planet Daily News, June 3 - European Central Bank Governing Council Member Wunsch stated that a US-Iran peace agreement reached before next week's ECB meeting will not weaken the rationale for raising interest rates. 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 is lasting or credible." He signaled support for the ECB to raise interest rates by 25 basis points. He believes that if the conflict remains unresolved, the discussion among policymakers before setting rates on June 11 "will be fairly easy." If a US-Iran peace agreement is reached, the discussion "might be slightly less easy. But the case for raising rates may still exist, just not as strong." He said: "At some point, we cannot let the market bear everything. We need to take a stand." (Jin Shi)