2017.10.1523:12:00UTC+00ECB Retains Optimistic Outlook on Wage, Inflation Growth

ECB President Mario Draghi said wages and inflation in the eurozone will eventually gain momentum but more gradual than early estimates, requiring continued patience from central bank officials.

Speaking on the sidelines of the International Monetary Fund meeting, the European Central Bank chief said wage growth has failed to properly respond to the launched stimulus citing several reasons, but the ECB continues to be convinced that the labor markets and not a structural shift in the inflationary conditions is the main cause for the weak price pressures.

With regards to policy, Draghi said that the ECB is confident that as economic conditions improve, the inflation rate will eventually develop in a 'self-sustained' way. But he also called on policymakers to be patient as this could also take time.

Despite the euro area experiencing 17 consecutive quarters of economic growth, wage growth remained soft, partially due to the underlying weakness in the labor market and low wage demands from unions in the 19-country economic bloc.

The ECB is scheduled to meet on October 26, where policymakers are due to decide whether to extend the stimulus, having to converge the accelerated economic expansion with weak wage and price growth.