French Finance Minister Bruno Le Maire said on Tuesday that wage growth faster than inflation was good news and would not trigger a rebound in inflation. He criticized monetary policy hawks who called for caution as the European Central Bank considers a rate cut in June. "I don't think this will lead to a rebound in inflation," Le Maire said. "Once wages fluctuate, some people will say it's too bad, this is not okay, and interest rates must be raised immediately."
Le Maire shared his concerns with European Central Bank President Christine Lagarde after data last week showed euro zone wages continued to rise in early 2024, raising concerns that inflation could be more resilient than expected.