ECB Officials Warn of Downside Risks to Inflation Despite Steady Interest Rates
ECB officials are monitoring risks that inflation could fall below target levels. A strong euro and slowing wage growth may trigger action to ensure stability.
The European Central Bank kept interest rates unchanged today, but the decision was accompanied by warnings from several policymakers that inflation could fall below expectations. President Christine Lagarde christine lagarde and other officials noted that downward pressure from slowing wage growth, a strong euro, and cheaper imports could weaken price growth across the euro zone. This risk of too-low inflation matters because if it materialises, it would require the European Central Bank to be ready to act.
