“The main driver of inflation is normally wages. We see that the evolution of wages in most countries is not what it usually is in a recovery, which is that they rise very strongly,” Mersch said. Investors expect the ECB to reduce asset buys from next year as growth is robust and the threat of inflation is gone. But policy is expected to remain easy for years to come as inflation will not return to the bank’s target before the decade ends.
ECB has seen very little price pressure in recovery – Mersch
The European Central Bank has seen very little pressure on inflation despite an economic recovery and policymakers will discuss this autumn whether to curb stimulus, ECB Executive Board member Yves Mersch said on Monday. Mersch, considered a policy hawk, told Luxembourg radio station 100.7 in an interview that there were a number of reasons inflation was not rising, principal among them the relative lack of wage pressure.
- Popular
-
UK still likely to leave the EU with a negotiated agreement, says Number 10
A successful deal with the European Union remains the “most… -
Sentix Investors Confidence rose to 14.7 in August
The summer heat in Europe is also causing economic temperatures… -
German factory orders -4.0% seasonally adjusted on the previous month
Based on provisional data, the Federal Statistical Office (Destatis) reports… -
China's July exports growth still seen holding up despite U.S. tariffs: Reuters poll
China's exports are expected to have maintained solid growth in…
Tags
aud/usd2605
boe106
brexit96
china122
cpi147
daily fundamental2278
daily technical2199
ecb113
eur/usd1497
eurozone88
EurUsd1227
forex8896
gbp/usd1447
GbpUsd1111
gdp95
industrial production106
inflation73
interest rates219
ppi93
rba91
resistance71
retail sales125
support71
trade balance108
uk188
unemployment claims160
unemployment rate122
usd1004
weekly fundamental565
weekly technical419