ECB Hike May Be Inevitable to Keep Credibility, Stournaras Says

Article content (Bloomberg) — Preserving the European Central Bank’s credibility is a strong argument in favor of an interest-rate increase next month, according to Governing Council member Yannis Stournaras. Article content Inflation prospects are worsening in the absence of a peace deal between the US and Iran, and euro-area consumers will start to wonder at some point whether policymakers mean it when they say they’re ready to react, Stournaras said in Nicosia, Cyprus, where he’s attending a meeting of European finance chiefs. Article content Article content Article content “An interest-rat…