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FRANKFURT (Reuters) – Euro zone wage growth may finally be picking up but longer-term inflation expectations are still anchored around the European Central Bank’s 2% target, ECB Vice President Luis de Guindos said on Monday.
“Incoming wage data and recent wage agreements indicate that wage dynamics may be picking up, which warrants continued monitoring,” de Guindos said in a speech. “However, to date, inflation expectations have remained anchored.”
De Guindos added that the ECB would continue to raise interest rates, proceeding “with prudence”, to get inflation back to target, even if this process takes an “extended” period.
(Reporting by Balazs Koranyi; Editing by Gareth Jones)
