May 24, 2017 / 8:58 AM / 2 months ago

ECB still needs more evidence of rising inflation: Praet

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FRANKFURT, May 24 (Reuters) - The European Central Bank needs to see more evidence of a sustained pick-up in inflation before it can reduce its monetary stimulus, ECB chief economist Peter Praet said on Wednesday.

"Underlying inflation pressures still give scant indications of a convincing upward trend as domestic cost pressures, notably wage growth, remain subdued," Praet a conference in Sofia.

"Overall, while we are certainly seeing a firming, broadening and more resilient economic recovery, we still need to create a sufficiently broad and solid information basis to build confidence that the projected path of inflation is robust, durable and self-sustained,", he added.

Without ECB support, the progress towards a sustained adjustment in the bank's inflation projections will likely be slower or even stall, Praet added.

The ECB's Governing Council will next meet on June 8 in Tallinn. (Reporting by Tsvetelia Tsolova; writing by Andreas Framke)

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