FRANKFURT (MNI) – A posture of strong vigilance by the European
Central Bank is necessary to restrain upside risks to price stability,
ECB Governing Council member Yves Mersch said Monday.
“It is essential that the recent rise in inflation not engender
generalized inflationary tensions over the medium term,” the head of the
Luxembourg Central Bank said in an editorial published in his bank’s
latest Bulletin. “Strong vigilance is needed with a view to containing
the upside risks to price stability.”
The Governing Council “remains ready to act in a firm and timely
manner to prevent upside risks weighing on medium-term price stability
from materializing,” Mersch said, underlining the necessity of solidly
anchoring expectations.
Currently “very accommodative” monetary policy is supporting
Eurozone economic activity, he said, adding that the trend of the
economy remains positive despite strong uncertainty.
–Frankfurt bureau tel.: +49-69-720142. Email: frankfurt@marketnews.com
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