ECB’s Vasle: Cannot Rule out Another Spike in Wage Growth

20 October 2024

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Boštjan Vasle warned on Sunday that wage growth could still register an uptick.

According to the FT, Vasle, who heads the Banka Slovenije, said that he ‘cannot rule out at the moment that we will not see another spike in wage growth’.

There were still reasons to worry about elevated and relentless price increases, he stated.

Undershooting inflation was not a ‘pressing issue’ for now, he said.

Despite cutting rates for second time in a row in October, Vasle said, ‘This does not automatically mean that we will now act at every meeting’.

The December meeting would be a good chance to review the extent to which the economic situation has changed, as the ECB will publish a new round of forecasts, he said. ‘This would be a starting point for the broader debate', he said.