Small font size A Larger text size A Largest text size A

ECB's Wunsch: Inflation risk more downward than upward

BY Reuters | ECONOMIC | 07/04/25 09:37 AM EDT

BERLIN, July 3 (Reuters) - The risk of inflation is pointing downwards rather than upwards, Belgium's central bank governor, Pierre Wunsch, told Germany's Handelsblatt newspaper in an interview published on Thursday.

Speaking on the sidelines of a central bank conference in Sintra, the European Central Bank governor cited the fall in energy prices, the continuing strength of the euro and uncertain growth prospects as reasons for the assessment.

Interest rates at the neutral level may not be sufficient, Wunsch said, adding that there are arguments in favour of a moderately supportive monetary policy. (Writing by Friederike Heine Editing by Madeline Chambers)

More Fixed Income News

Bank of Japan Set to Hike Rates to 30-Year High, Posing Another Threat to Bitcoin BY Coindesk |ECONOMIC 09:00 AM EST
With Fed independence in crosshairs, will Supreme Court back Trump again? BY Reuters |ECONOMIC 06:01 AM EST
With Fed independence in crosshairs, will Supreme Court back Trump again? BY Reuters |ECONOMIC 06:01 AM EST
JPMorgan's Dimon signals support for Kevin Warsh as Fed chair, FT reports BY Reuters |ECONOMIC 12/12/25 07:47 PM EST

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article