Two central bankers who are getting it wrong on wage growth

THE European Central Bank and the Bank of England could be heading for a policy mistake, and the culprit is pay. Or rather, what each makes of it.

To say that inflation in the European Union is sluggish is an understatement - the 1.2 per cent outturn last month is hardly inspiring, as are the bank's latest projections.

So perhaps this explains why the ECB is so relaxed about wage settlements in Germany, the bloc's most-productive country.