ECB’s Kocher Says Interest-Rate Hold Gives Time to Assess Risks

The European Central Bank’s decision to hold interest rate this week provides policymakers with more time to assess whether the Middle East crisis triggers prolonged inflation, according to Governing Council member Martin Kocher.

Economic developments are still close to the ECB’s baseline scenario published in March, but the inflation outlook has deteriorated and prolonged inflation may be possible, the Austrian National Bank governor said in a blog post published Friday.