Weber on oil price shocks and monetary policy

In the speech 'Oil price shocks and monetary policy in the euro area' given on 11 May Axel Weber of the Deutsche Bundesbank said the inflationary risks connected with runaway record oil prices are likely to increase as the economic recovery in the eurozone gathers pace.

And that could lead the European Central Bank to raise its key interest rates, the German central bank chief suggested. "Underlying inflationary pressures ... might gain in strength as an improvement in the euro area economy is

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