European Central Bank Governing Council member Pierre Wunsch said that if the predictions in the latest outlook are realized, the bank can keep interest rates unchanged for a period of time. In an interview in Brussels on Friday, Wunsch said that shocks are always likely to occur, but if the new predictions come true, then there is no need to act yet. When asked about the possibility of interest rate hikes next year, he said he “doesn't predict it at all, not even the direction.” ECB policymakers are now at ease about staying on hold, but they remain cautious about where borrowing costs will go next. Ahead of Thursday's interest rate decision, Executive Director Isabel Schnabel said she was “OK” with the market's expectation that “the next step will be to raise interest rates,” although “it won't happen anytime soon.”

European Central Bank Governing Council member Pierre Wunsch said that if the predictions in the latest outlook are realized, the bank can keep interest rates unchanged for a period of time. In an interview in Brussels on Friday, Wunsch said that shocks are always likely to occur, but if the new predictions come true, then there is no need to act yet. When asked about the possibility of interest rate hikes next year, he said he “doesn't predict it at all, not even the direction.” ECB policymakers are now at ease about staying on hold, but they remain cautious about where borrowing costs will go next. Ahead of Thursday's interest rate decision, Executive Director Isabel Schnabel said she was “OK” with the market's expectation that “the next step will be to raise interest rates,” although “it won't happen anytime soon.”