Japan has not changed ECB inflation view

The Euro-zone’s near-term inflation outlook has not been changed by the disasters in Japan and G7 members would intervene again in yen FX markets if Japan decided it was necessary, a top ECB policymaker was quoted as saying on Tuesday.

ECB board member Juergen Stark, who heads the bank’s influential economics unit, said the earthquake, tsunami and nuclear disasters in Japan had increased economic uncertainty in recent weeks, as had increased tensions in the Middle East.

Nevertheless, he bolstered the view that the ECB will follow through with its plans to hike interest rates next month.

“For me, the situation in the euro area, with the ongoing economic growth and ongoing threat to price stability, in the short term has not changed,” Stark said in an interview with Japan’s Nikkei newspaper carried out on Friday.

“However, the uncertainty has increased, in particular due to the events in Japan and due to the geopolitical situation in other regions.”

Reuters

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