Appeared on April 18, 2007
Rising oil prices are the biggest inflationary danger in a euro zone economy that is enjoying favorable growth, European Central Bank policymakers said on Monday, adding to expectations for another ECB interest rate increase.
“The biggest threat would be that the sharp increase in oil commodity prices would lead to second-round effects” where businesses pass higher costs onto consumers, Christian Noyer, president, Banque de France said in a speech at Drexel University in Philadelphia.