Underlying inflation in the euro zone does not signal a great danger at this stage, and interest rates are not likely to rise to 4.25 per cent, OECD Secretary General Angel Gurria said today.
"It looks like underlying inflation does not imminently signal that there could be a very great danger. But it's good that central banks are looking at it," he told reporters during a visit to the Slovak capital Bratislava.
When asked about a small but increasing number of economists who expect a move to 4.25 per cent in euro zone interest rates by the end of the year - a view markets are pricing in - Mr Gurria said: "I don't see it at this stage unless the price of oil plays some trick again."