ECB Faces Diverging Concerns, Pointing to a Hold at Next Meeting

1552 GMT - "The European Central Bank is currently facing a very complex set of circumstances," KfW economist Dirk Schumacher says. Inflation remains well above the central bank's 2% target, and the recent rise in oil and gas prices means this is likely to remain the case. But at the same time wage growth is slowing and households' inflation expectations show no signs of accelerating, he says. The ECB must also take into account the sharp rise in interest rates on longer-term products, which in itself will dampen growth and, consequently, inflationary pressure, he says. All of this points to the ECB holding rates next week, though policymakers will likely send a strong signal that further monetary-policy tightening remains necessary, Schumacher says.