March 2 (Reuters) - The European Central Bank is widely expected to keep interest rates at a record low of 1.0 percent on Thursday, although the bank is seen sharpening its language on inflation following the recent rise in euro zone prices.
Below are highlights of ECB policymakers' comments since the bank's last meeting on Feb. 3.
To read full stories, double-click on the numbers in brackets. For highlights of ECB President Jean-Claude Trichet's news conference, click on.
MARKO KRANJEC (SLOVENIA), MARCH 1
'We all know what's happening (with oil prices), eventually it can increase inflation expectations.'
MARIO DRAGHI (ITALY), FEB 26
'The appearance of inflationary tensions does require that we carefully assess the timing and methods for restoring normal monetary conditions and interest rates.'
VITOR CONSTANCIO (VICE PRESIDENT), FEB 25
On the impact of recent rise in oil prices: 'It depends very much if it is temporary or not, which means monetary policy does not respond immediately to such a supply shock, nor should it.'
EWALD NOWOTNY (AUSTRIA), FEB 25
'In the real economy we have entered a phase, which I think in the meantime is self-sustaining. What occupies us now is public finances.'
'It would not be unproblematic to use the instrument of interest rate policy, of monetary policy, for two goals, namely inflation and asset bubbles. For two goals you need two instruments.'
YVES MERSCH (LUXEMBOURG), FEB 22
'I would not be surprised if we adjust our assessment of (inflation) risks compared to December.'
'Our interest rates are at an exceptionally low level, which was warranted by an environment where there was anaemic growth and even negative growth over a prolonged period, and therefore no inflationary pressures. This situation has now changed and this would mean that inevitably we also have to rebalance our monetary policy stance.'
NOUT WELLINK (NETHERLANDS), FEB 22
'This (1 pct ECB rate) is not an equilibrium rate.'
'This is really an interest rate that at a certain moment starts to distort the economic and financial process; this reason in itself is a good enough reason to increase, at a certain moment, your policy rate.'
JUERGEN STARK (EXECUTIVE BOARD), FEB 21
'In my view, risks to the medium-term outlook for price developments in the euro area as a whole could move to the upside.'
'We will act quickly and decisively on any indications of emerging second-round effects and of a dis-anchoring of inflation expectations.'
'The latest economic developments suggest that the monetary policy of the ECB that has already been accommodative has become even more accommodative.'
ATHANASIOS ORPHANIDES (CYPRUS), FEB 21
'The sharp increases in food and energy prices over the last few months have been a surprise, and I don't think we can rule out further surprises that would result in inflation staying above 2 percent for somewhat longer than what we expected.'
'At the moment, this increase is not reflected in underlying inflation measures, suggesting that the inflation increase may remain temporary and not become embedded in longer-term expectations. So we do not need to be overly concerned yet, but we need to continue to monitor developments.' http://www.centralbank.gov.cy/nqcontent.cfm?a_id=7903
EWALD NOWOTNY (AUSTRIA), FEB 21
'We cannot influence the oil price but we are watching out that there are no second-round effects or that this leads to a (price) spiral. At the moment we have no indication that this is happening but we are especially vigilant.'
LORENZO BINI SMAGHI (EXECUTIVE BOARD), FEB 21
'There is pressure on prices of agricultural products and this may not be a temporary phenomenon, it may be a permanent one, the same for energy,'
LORENZO BINI SMAGHI (EXECUTIVE BOARD), FEB 18
'It is a key challenge for monetary policy to avoid spillovers and maintain inflation expectations in check ... This requires the ability to take pre-emptive actions if needed.'
'As the economy gradually recovers and global inflationary pressures arise, the degree of accommodation of monetary policy has to be monitored and, if needed, corrected.'
CHRISTIAN NOYER (FRANCE), FEB 18
'We should be back in the zone of price stability at the end of the year.'
GUY QUADEN (BELGIUM), FEB 16
'This (liquidity support) programme was necessary, remains necessary, but should not be considered as a permanent instrument in the toolbox of the European Central Bank.'
JEAN-CLAUDE TRICHET (PRESIDENT), FEB 16
'Individual countries must accept the monetary policy as a given and adjust their national policies accordingly.'
'When a country experiences a boom, it needs to make its own national policies ... more restrictive in order to avoid the economy overheating or speculation getting out of control.'
VITOR CONSTANCIO (PORTUGAL), FEB 15
'We don't know if we are looking at a hump in commodity prices or not.'
'We have to wait and see and that's what we have said. Of course this a matter of some concern, as we have underlined, but it's still soon to make definite conclusions from it. What is important for us is to avoid absolutely any second-round effects.'
JEAN-CLAUDE TRICHET (PRESIDENT), FEB 14
'The Governing Council considers today that the balance of risks regarding future inflation remains balanced but that it could shift in the direction of stronger inflation in the future.'
NOUT WELLINK, (NETHERLANDS) FEB 10
'On balance the base scenario (of inflation in line with the ECB's objective) is still a reasonable one, but with -- to my mind -- clearly upward risks emerging now.'
AXEL WEBER, (GERMAN) FEB 10
'Issuing so-called Euro-bonds or buying government bonds on the secondary market are not a suitable method in fighting the crisis.'
'These instruments lead to the collectivisation of risks, which would reward a lack of budgetary discipline, and would not strengthen confidence in the sustainability of public finances.'
GERTRUDE TUMPEL GUGERELL, (EXECUTIVE BOARD) FEB 10
'What is important now is that higher commodity prices do not feed through to the services sector, for instance, and other price and wage increases.'
YVES MERSCH, (LUXEMBOURG) FEB 7
'(The ECB) is obliged to intervene vigorously if these price hikes trickle through the economic system in the form of secondary effects, which would be a danger to the anchoring of inflationary expectations.'
'We are capable of raising interest rates without exiting other non-conventional measures.'
VITOR CONSTANCIO (PORTUGAL), FEB 4
Asked if he felt the ECB had been understood by markets after its February meeting, Constancio replied: 'If you take the reaction to both meetings this year -- the first in January and the one yesterday -- if you take the two together, I would say I am satisfied.'
(Reporting by Marc Jones; Editing by Ruth Pitchford) Keywords: ECB/COMMENTS RATES (marc.jones@thomsonreuters.com; +49 (0)69 7565 1219; reuters messaging: marc.jones.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Below are highlights of ECB policymakers' comments since the bank's last meeting on Feb. 3.
To read full stories, double-click on the numbers in brackets. For highlights of ECB President Jean-Claude Trichet's news conference, click on.
MARKO KRANJEC (SLOVENIA), MARCH 1
'We all know what's happening (with oil prices), eventually it can increase inflation expectations.'
MARIO DRAGHI (ITALY), FEB 26
'The appearance of inflationary tensions does require that we carefully assess the timing and methods for restoring normal monetary conditions and interest rates.'
VITOR CONSTANCIO (VICE PRESIDENT), FEB 25
On the impact of recent rise in oil prices: 'It depends very much if it is temporary or not, which means monetary policy does not respond immediately to such a supply shock, nor should it.'
EWALD NOWOTNY (AUSTRIA), FEB 25
'In the real economy we have entered a phase, which I think in the meantime is self-sustaining. What occupies us now is public finances.'
'It would not be unproblematic to use the instrument of interest rate policy, of monetary policy, for two goals, namely inflation and asset bubbles. For two goals you need two instruments.'
YVES MERSCH (LUXEMBOURG), FEB 22
'I would not be surprised if we adjust our assessment of (inflation) risks compared to December.'
'Our interest rates are at an exceptionally low level, which was warranted by an environment where there was anaemic growth and even negative growth over a prolonged period, and therefore no inflationary pressures. This situation has now changed and this would mean that inevitably we also have to rebalance our monetary policy stance.'
NOUT WELLINK (NETHERLANDS), FEB 22
'This (1 pct ECB rate) is not an equilibrium rate.'
'This is really an interest rate that at a certain moment starts to distort the economic and financial process; this reason in itself is a good enough reason to increase, at a certain moment, your policy rate.'
JUERGEN STARK (EXECUTIVE BOARD), FEB 21
'In my view, risks to the medium-term outlook for price developments in the euro area as a whole could move to the upside.'
'We will act quickly and decisively on any indications of emerging second-round effects and of a dis-anchoring of inflation expectations.'
'The latest economic developments suggest that the monetary policy of the ECB that has already been accommodative has become even more accommodative.'
ATHANASIOS ORPHANIDES (CYPRUS), FEB 21
'The sharp increases in food and energy prices over the last few months have been a surprise, and I don't think we can rule out further surprises that would result in inflation staying above 2 percent for somewhat longer than what we expected.'
'At the moment, this increase is not reflected in underlying inflation measures, suggesting that the inflation increase may remain temporary and not become embedded in longer-term expectations. So we do not need to be overly concerned yet, but we need to continue to monitor developments.' http://www.centralbank.gov.cy/nqcontent.cfm?a_id=7903
EWALD NOWOTNY (AUSTRIA), FEB 21
'We cannot influence the oil price but we are watching out that there are no second-round effects or that this leads to a (price) spiral. At the moment we have no indication that this is happening but we are especially vigilant.'
LORENZO BINI SMAGHI (EXECUTIVE BOARD), FEB 21
'There is pressure on prices of agricultural products and this may not be a temporary phenomenon, it may be a permanent one, the same for energy,'
LORENZO BINI SMAGHI (EXECUTIVE BOARD), FEB 18
'It is a key challenge for monetary policy to avoid spillovers and maintain inflation expectations in check ... This requires the ability to take pre-emptive actions if needed.'
'As the economy gradually recovers and global inflationary pressures arise, the degree of accommodation of monetary policy has to be monitored and, if needed, corrected.'
CHRISTIAN NOYER (FRANCE), FEB 18
'We should be back in the zone of price stability at the end of the year.'
GUY QUADEN (BELGIUM), FEB 16
'This (liquidity support) programme was necessary, remains necessary, but should not be considered as a permanent instrument in the toolbox of the European Central Bank.'
JEAN-CLAUDE TRICHET (PRESIDENT), FEB 16
'Individual countries must accept the monetary policy as a given and adjust their national policies accordingly.'
'When a country experiences a boom, it needs to make its own national policies ... more restrictive in order to avoid the economy overheating or speculation getting out of control.'
VITOR CONSTANCIO (PORTUGAL), FEB 15
'We don't know if we are looking at a hump in commodity prices or not.'
'We have to wait and see and that's what we have said. Of course this a matter of some concern, as we have underlined, but it's still soon to make definite conclusions from it. What is important for us is to avoid absolutely any second-round effects.'
JEAN-CLAUDE TRICHET (PRESIDENT), FEB 14
'The Governing Council considers today that the balance of risks regarding future inflation remains balanced but that it could shift in the direction of stronger inflation in the future.'
NOUT WELLINK, (NETHERLANDS) FEB 10
'On balance the base scenario (of inflation in line with the ECB's objective) is still a reasonable one, but with -- to my mind -- clearly upward risks emerging now.'
AXEL WEBER, (GERMAN) FEB 10
'Issuing so-called Euro-bonds or buying government bonds on the secondary market are not a suitable method in fighting the crisis.'
'These instruments lead to the collectivisation of risks, which would reward a lack of budgetary discipline, and would not strengthen confidence in the sustainability of public finances.'
GERTRUDE TUMPEL GUGERELL, (EXECUTIVE BOARD) FEB 10
'What is important now is that higher commodity prices do not feed through to the services sector, for instance, and other price and wage increases.'
YVES MERSCH, (LUXEMBOURG) FEB 7
'(The ECB) is obliged to intervene vigorously if these price hikes trickle through the economic system in the form of secondary effects, which would be a danger to the anchoring of inflationary expectations.'
'We are capable of raising interest rates without exiting other non-conventional measures.'
VITOR CONSTANCIO (PORTUGAL), FEB 4
Asked if he felt the ECB had been understood by markets after its February meeting, Constancio replied: 'If you take the reaction to both meetings this year -- the first in January and the one yesterday -- if you take the two together, I would say I am satisfied.'
(Reporting by Marc Jones; Editing by Ruth Pitchford) Keywords: ECB/COMMENTS RATES (marc.jones@thomsonreuters.com; +49 (0)69 7565 1219; reuters messaging: marc.jones.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.