ECB :rising oil prices are increasing risks to price stability

Discussion in 'Commodity Futures' started by ASusilovic, Oct 17, 2007.

  1. 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...