European Central Bank Governing Council member Wunsch: Interest rates may need to have "mildly supportive" nature.

European Central Bank Governing Council member Pierre Wunsch said that the euro area economy may need a "moderately supportive" level of interest rates to ensure that inflation does not fall below the target level after a series of shocks. The Belgian central bank governor said in an interview on Tuesday that due to the impact of US tariff measures on market confidence, the strengthening euro and falling energy costs, inflationary pressures may be weaker than previously expected. Therefore, he believes that market expectations of a year-end deposit rate slightly below 2% are "reasonable." Wunsch said that cutting interest rates twice by 25 basis points each would lower the rate to 1.75%, which means that the policy rate would have a "moderately supportive" stance.