The European Central Bank has so far contained the negative impact of the oil slump on other prices and wages but inflation will rise only gradually and patience with monetary policy is required, Reuters quoted governing council member Ardo Hansson as saying Wednesday. “I think it is good to make the point that we need some patience,” Hansson said, adding that monetary policy works with long lags so expectations need to be aligned with what is realistically possible. “One monitors these second round effects whether it starts affecting wage behavior and so on,” Hansson, Estonia’s central bank governor told Reuters on the sidelines of a news conference. “So far, these things have been contained—the possible second round effects.” Meanwhile, bank lending to eurozone firms grew in annual terms in March at a slightly faster pace than in the previous month, data from the ECB showed. The data showed that loans to firms grew 1.1% versus the previous year, against 1% growth in the previous month.
