ECB’s Praet says German wage rise fully in line with forecasts

FRANKFURT (Reuters) – A benchmark salary increase secured by Germany’s largest trade union this week is “fully in line” with the European Central Bank’s inflation forecasts, the ECB’s chief economist Peter Praet said on Thursday.

His comments dampened speculation that the 4.3 percent pay rise negotiated by labor union IG Metall and the Suedwestmetall employers’ federation – which is seen as heralding greater wage growth in the rest of Germany – would prompt the ECB to raise its inflation forecasts and to tighten policy faster.

“(The pay rise is) fully in line with our baseline scenario for inflation,” Praet said during a question and answer session on Twitter.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.