A turnaround in interest rates in June is "understandable and sensible" for Volker Wieland (NZZ)

In the euro area, everything points to a turnaround in interest rates in June. "It is understandable and sensible that the ECB and Fed do not want to cut interest rates too soon despite the easing inflationary pressure, especially as both reacted far too late to the rise in inflation two years ago," Prof. Volker Wieland said in an interview with the Neue Zürcher Zeitung (NZZ).

He "refers to the tough wage negotiations between trade unions and employers and the danger of a wage-price spiral. The desire of employees to compensate for real wage losses is justified and understandable, but the high wage settlements could keep inflation at an undesirably high level for some time to come from a monetary policy perspective."

Neue Zürcher Zeitung: "Die EZB lässt die Leitzinsen nochmals unverändert, doch im Juni dürfte sie erstmals seit 2019 die Zinsen reduzieren"