ECB's Wunsch tells Econostream that the case for further tightening is receding and any surprise in EZ inflation before the July meeting is more likely to be on the downside,

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ECB's Wunsch tells Econostream that the case for further tightening is receding and any surprise in EZ inflation before the July meeting is more likely to be on the downside,

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  • Would need stronger second-round effects to justify further tightening.
  • One hike could suffice if shock fades before significant second-round effects. 
  • More than one hike to depend on more persistence and stronger second-round effects. 

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