ECB Governing Council member Wunsch said the case for another rate hike is less
clear than in June. He said the US‑Iran agreement has largely removed the
shock's root. Markets are pricing another move but the necessity is weaker than
previously expected; if a further hike is needed he would prefer to act swiftly,
though not necessarily in July. Wunsch added inflation will show some
second‑round effects and stay above target for several quarters, but he is not
overly worried; he would not delay long if data warranted another rate increase,
without committing to timing.
