Article: ECB sees higher inflation Central bank is expected to raise interest rates

Carter Dougherty
International Herald Tribune
10-29-2005
European Central Bank officials warned Friday that higher inflation was on the way, wrapping up a week of heightened rhetoric that suggested the ECB was preparing to end an era of historically low interest rates, possibly as early as December. Most pointedly, Nout Wellink, the governor of the Dutch central bank and a member of the ECB's rate-setting council, worried aloud that expensive oil was pushing up other prices as well. ''Winter is coming and the high crude price will be reflected in heating oil prices,'' Wellink told Bloomberg News. ''If this trend continues, then wages will react as well.'' The ECB's worst nightmare, so far ...

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