ECB's Coene: inflation pressure is growing
Inflationary pressures in the euro zone are growing and higher interest rates are likely, but data will determine the pace at which the bank raises borrowing costs, ECB Governing Council member Luc Coene said on Wednesday. "Markets do currently anticipate a gradual withdrawal of the monetary accommodation," Coene told a banking seminar. "I personally think that is no unreasonable assumption, given the clear upside risks to price stability I mentioned earlier," said Coene, the governor of the Belgian central bank. "Needless to say, it is the incoming data and our assessment of the economic outlook that will ultimately determine our course of action and the pace at which monetary accommodation will be withdrawn," he told the Dexia seminar in Brussels. Inflationary pressures have increased, he said. "It is clear that the risks to the inflation outlook have shifted to the upside," he said, adding: "The euro area recovery is gaining good footing and commodity prices have posted large gains. These higher prices push up inflation." more
