ECB’s Wunsch: Policy View Little Changed Since September, More Hikes May Be Needed

Wunsch is pushing back against the market's implicit bet that the hiking cycle is over, and the detail that matters is his read on resilience: if the economy holds up better than assumed, the case for holding rates high — or going further — strengthens rather than fades. The nod to long-end yields tightening since September suggests financial conditions are already doing some of the work, which cuts both ways for the Council. Whether other Governing Council members echo this framing, or the long end keeps tightening on its own, is the open question.