25 January 2008, 17:58  European Central Bank will act preemptively

The European Central Bank will act preemptively on inflationary pressure, and a restrictive policy may be needed if wage deals are inappropriately high, ECB Governing Council member Axel Weber said Friday, according to the advance text of an interview in the Boersen-Zeitung. "If there is broad political support for wage claims that don't conform to price stability, this could require additional monetary policy action," Weber said in the interview, which will appear in the paper's Saturday edition. Weber said there is undoubtedly a risk that inflation may accelerate further, and he added that the ECB will act on inflation according to its mandate. "The risk of an acceleration in inflation".

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