ECB must keep options open beyond Dec amid uncertainty: accounts

FRANKFURT (Reuters) - The European Central Bank must keep its policy options open beyond a crucial meeting in December as uncertainty over the likely evolution of inflation is exceptionally high, policymakers concluded in October, according to the accounts of the meeting.

High inflation is still largely seen as temporary but the current "hump" in prices will be more durable than once thought, raising the risk that wages will start to adjust and keep price growth elevated, the accounts showed.

"It was cautioned that the data available in December would not resolve all the uncertainties around the medium-term inflation outlook," the accounts showed on Thursday.

"It was seen as important that the Governing Council should keep sufficient optionality to allow for future monetary policy actions, including beyond its December meeting," the ECB said in the accounts.

The comments appear to echo calls by conservative policymakers such as Jens Weidmann and Klaas Knot that the ECB avoid an extensive commitment beyond December as the inflation outlook could change quickly.

In December, the bank is all but certain to agree on winding down a 1.85 trillion euro ($2.08 trillion) pandemic emergency bond-buying programme from March but will contemplate ramping up other purchases to pick up the slack.

While most policymakers appear to agree on the need for continued stimulus, views differ on how much support may be needed as the inflation path was moving up, risks were elevated and projections would have to be raised.