European Central Bank council member Klaus Liebscher said the bank remains focused on ``significant'' and rising inflation risks, suggesting it may still raise interest rates.
``The message was and is that risks to price stability are clearly pointing to the upside,'' Liebscher, who also heads Austria's central bank, said in an interview in Vienna yesterday. ``There are significant upside risks'' and ``rising oil prices are also increasing these risks to price stability.''
The ECB on Oct. 4 left its main lending rate at 4 percent after shelving a planned increase in September to assess how the U.S. housing slump and the sudden increase in credit costs will affect the economy. At the same time, inflation breached the ECB's 2 percent limit for the first time in more than year last month and oil prices have risen to a record.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aEKqahjCfUaA&refer=home
I wouldn´t expect oil prices having such an impact on ECB monitoring as EUR so strong...
``The message was and is that risks to price stability are clearly pointing to the upside,'' Liebscher, who also heads Austria's central bank, said in an interview in Vienna yesterday. ``There are significant upside risks'' and ``rising oil prices are also increasing these risks to price stability.''
The ECB on Oct. 4 left its main lending rate at 4 percent after shelving a planned increase in September to assess how the U.S. housing slump and the sudden increase in credit costs will affect the economy. At the same time, inflation breached the ECB's 2 percent limit for the first time in more than year last month and oil prices have risen to a record.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aEKqahjCfUaA&refer=home
I wouldn´t expect oil prices having such an impact on ECB monitoring as EUR so strong...