ECB's Kocher: No Evidence of Second-Round Effects, Will Act If Needed

European Central Bank (ECB) Governing Council member Martin Kocher said on Friday that he does not see any hard evidence of second-round effects in the euro area economy. However, he added that the central bank stands ready to act if the inflation outlook deteriorates.

Kocher's comments come amid ongoing monitoring of wage and price dynamics in the euro zone. Second-round effects refer to the risk that higher inflation feeds into wages and then back into prices, creating a persistent cycle.

The ECB has been navigating a delicate balance between controlling inflation and supporting economic growth. Markets will watch for further guidance from other ECB policymakers.