What did ECB policymaker Pierre Wunsch say about the possibility of another interest rate hike, and what specific inflation data influenced his view?

Pierre Wunsch said the ECB may raise interest rates again as soon as next month if it sees more evidence of inflation spreading beyond energy—particularly in services—citing the euro zone's services inflation rising to 3.5% in May from 3.0% as a 'not-so-nice reading'; he stated that such a trend could justify a further 25 basis-point hike 'to be on the safe side', with the option to cut later if inflation dynamics reverse.

How did Wunsch reconcile supporting last week’s rate hike despite the U.S.-Iran deal easing energy prices and raising the risk of an oil glut?

Wunsch acknowledged that with the Iran deal in place and wage growth moderating, an argument could be made for 'looking through' the energy-driven inflation spike—but he defended the hike as appropriate given rising inflation and heightened uncertainty at the time of the decision; he noted real rates had slightly declined after the 25-basis-point increase and emphasized the ECB retains flexibility to cut later if needed, adding, 'Have we made a mistake? No.'