ECB policymaker Wunsch said the bank may need to raise rates further to curb
inflation still close to 4%. Wunsch said: "We may need to hike again," but
highlighted substantial uncertainty from energy markets and AI developments and
said he "will not place any bets." He gave no timing for additional tightening,
adding that "ultimately it makes little difference whether in October or
December." He noted markets are pricing more action and called that a reasonable
baseline amid a highly uncertain outlook.
