ECB Guidance Doesn’t Rule Out Rate Hike, Bundesbank Says

The European Central Bank may raise rates if inflation pressure increases, even after it pledged to keep borrowing costs low, according to Germany’s Bundesbank.

The ECB’s commitment “is not an imperative statement, and it doesn’t represent a change” in the monetary policy stance, the German central bank said today in its monthly report. “Forward guidance doesn’t rule out an increase in the benchmark rate if greater inflation pressure emerges.”