ECB warns again over rate hike

EUROPEAN Central Bank executive board member Gertrude Tumpel-Gugerell has said “strong vigilance” is necessary to keep a lid on inflation — indicating policy makers may raise interest rates next month.

“Should there be any signs of inflationary risks over the medium term, the ECB is ready and determined to take appropriate action in good time,” Tumpel-Gugerell said in a speech in Salzburg, Austria.

“The risks to medium-term price developments are tilted to the upside,” she said. “Against this background, strong vigilance is, of course, necessary and we are monitoring the situation closely.”