ECB's Mersch says there are still upside risks to inflation. The comments come in the Bank of Luxembourg's bi-annual economic bulletin and say that the inflation risks identified at the time of the July rate hike remain today". He added that "the decline in oil prices on world markets is partially compensated by the higher value of the dollar" and stressed once again that it is "essential to avoid broad-based second-round effects". Mersch said weak Q2 GDP should not be overinterpreted, but admitted that the risks to growth lie to the downside. Nothing new in the comments that would add to the ECB's monthly report, also published today.
