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

Odaily Planet Daily News, June 3rd – European Central Bank (ECB) Governing Council member Pierre Wunsch stated that a US-Iran peace agreement reached before the ECB meeting next week will not weaken the case for raising interest rates. Wunsch remarked, "If a peace agreement is indeed reached on the eve of the meeting, it will become part of the discussion. But we cannot know if it will be durable or credible." He hinted that he supports a 25 basis point rate hike by the ECB. He believes that if the conflict remains unresolved, policymakers' discussions ahead of the June 11th rate-setting meeting "will be fairly easy." If a US-Iran peace agreement is reached, the discussions "might be slightly less easy. But the case for raising rates could still exist, just less compelling." He stated, "At some point, we cannot let the market bear everything. We need to take a stance." (FT)