ECB Needs Full Optionality With Risks on Both Sides, Kazaks Says

European Central Bank Governing Council member Martins Kazaks said the economy has been faring better than expected but officials must keep all possibilities on the table because of continued uncertainty globally.

Wage growth is a key reason why inflation has been more stubborn than previously envisaged, the Latvian official said Friday — a day after the ECB kept borrowing costs at 2% for a fourth meeting. On the other hand, competitive pressure from China is set to become more pronounced, possibly exerting downward pressures on prices, he said.