Buba's Weber warns on German wage hikes

Bundesbank president Axel Weber warned Friday 19 January that sharp wage increases in Germany could set off a new round of inflation and hinder the European Central Bank's price stability goal.

"At its current level of 3.5 pct, the eurozone benchmark interest rate remains low and monetary policy is expansive," Axel Weber said in remarks at a gathering of the Frankfurt chambers of commerce and industry.

The Bundesbank chief noted that while low rates stimulated the economy, they also risked sp