The potential for wage increases is making the outlook for 2008 inflation uncertain, European Central Bank Governing Council member Nicholas Garganas told Bloomberg news agency in an interview published Monday. "There are a number of risks that still worry me: for example labor markets are tightening," he said. "In many countries, wages have been kept very low. There's this chance that there might be a catching-up process. All in all, there's still a great deal of uncertainty about the development of inflation in 2008," Garganas said. Strong economic growth and tighter labor markets could keep inflation above 2% in 2008, Garganas said. The ECB defines price stability as an inflation rate just below 2%. National central bank and ECB staff projections for 2008 will be published for the first time following the Dec. 7 policy meeting. For now, economic growth "remains strong" and borrowing rates are still at "historic lows," Garganas said, noting monetary conditions remain accommodative. "Monetary policy undoubtedly remains expansionary despite the rate increases of the past 12 months," Garganas said following a meeting of central bankers from the Group of 10 nations in Sydney. The ECB is expected to raise the key refinancing minimum bid rate to 3.50% on Dec. 7, from 3.25% now, which would be the sixth time the bank has raised interest rates since it began its tightening campaign in December 2005. Markets expect at least one further rate increase in 2007. "The conclusion of our monetary policy analysis is quite clear: it points to inflation risks," Garganas, who is also the Greek central bank Governor, added.