Eurozone rate cut questioned as German wages soar
ECB policymakers concerned about wage growth
ECB will need to see proof of slowing wage growth before cutting rates
The European Central Bank (ECB) will need to see proof of slowing wage growth in the euro zone before it considers cutting interest rates again, according to policymakers.
The ECB has already cut rates twice this year, but inflation remains below its target of 2%. Some policymakers believe that the ECB should cut rates again to boost growth, but others are concerned that this could lead to higher inflation.
The German government has already committed to raising the country's minimum wage from just below 10 an hour to 12 an hour by 2020. This is likely to put pressure on wages in other euro zone countries.
The eurozone's gross domestic product grew at an annualised rate of 0.3% in the second quarter of the year. This is below the ECB's forecast of 0.4%. The ECB is likely to downgrade its growth forecast for the year in its next meeting.
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