European Central Bank governing council member Axel Weber said the bank may need to raise interest rates to a level that restricts economic growth to keep inflation under control.
``If risks to price stability are threatening to materialize, monetary policy can't lose sight of its primary mandate -- even if that means no longer supporting the robust economy or becoming restrictive,'' Weber, who also heads Germany's Bundesbank, said in the text of a speech in Munich late yesterday. There may be an ``additional need'' to raise interest rates, given the ``expected acceleration in euro-region inflation over the coming months.''
The ECB stepped back from plans to raise rates in September, saying it wanted to assess the economic impact of rising credit costs and financial-market turbulence caused by the U.S. housing slump. Signs of discord are starting to emerge among ECB policy makers on the best way forward, with Weber the strongest advocate for another rate increase.
http://www.bloomberg.com/apps/news?pid=20601087&sid=adBvXJT8ijv0&refer=home
At some point I am more then irritated by ECB members ! Couple of days ago Trichet pointed at credit crunch and the impact on markets and now Weber´s frontal attack ! What´s going on over there ?
``If risks to price stability are threatening to materialize, monetary policy can't lose sight of its primary mandate -- even if that means no longer supporting the robust economy or becoming restrictive,'' Weber, who also heads Germany's Bundesbank, said in the text of a speech in Munich late yesterday. There may be an ``additional need'' to raise interest rates, given the ``expected acceleration in euro-region inflation over the coming months.''
The ECB stepped back from plans to raise rates in September, saying it wanted to assess the economic impact of rising credit costs and financial-market turbulence caused by the U.S. housing slump. Signs of discord are starting to emerge among ECB policy makers on the best way forward, with Weber the strongest advocate for another rate increase.
http://www.bloomberg.com/apps/news?pid=20601087&sid=adBvXJT8ijv0&refer=home
At some point I am more then irritated by ECB members ! Couple of days ago Trichet pointed at credit crunch and the impact on markets and now Weber´s frontal attack ! What´s going on over there ?
