ECB can cut rates and should rethink how it sets policy, Wunsch says

The European Central Bank can press ahead with interest rate cuts this year but needs to rethink how it forecasts inflation and sets policy based on these projections, Belgian policymaker Pierre Wunsch said on Wednesday.

The ECB has all but promised a rate cut on June 6 but sent few signals about subsequent moves given high services inflation and worries that a delay in monetary policy easing by the US Federal Reserve could also force it to take its time.

Wunsch, Belgium’s central bank governor...