FRANKFURT, May 24 (Reuters) - The European Central Bank needs to see more evidence of a sustained pick-up in inflation before it can reduce its monetary stimulus, ECB chief economist Peter Praet said on Wednesday.
“Underlying inflation pressures still give scant indications of a convincing upward trend as domestic cost pressures, notably wage growth, remain subdued,” Praet a conference in Sofia.
“Overall, while we are certainly seeing a firming, broadening and more resilient economic recovery, we still need to create a sufficiently broad and solid information basis to build confidence that the projected path of inflation is robust, durable and self-sustained,”, he added.
Without ECB support, the progress towards a sustained adjustment in the bank’s inflation projections will likely be slower or even stall, Praet added.
The ECB’s Governing Council will next meet on June 8 in Tallinn. (Reporting by Tsvetelia Tsolova; writing by Andreas Framke)