ECB must act if inflation starts pressuring wages: ECB's Kazaks

FRANKFURT (Reuters) - The European Central Bank will need to tighten policy if the current bout of inflation starts putting undue pressure on wages or inflation expectations, Latvian central bank chief Martins Kazaks said on Monday.

"When the shocks are from the supply side, as we currently see them, and they are of a transitory nature... I think we should look through them," Kazaks, who sits on the ECB's policy-setting Governing Council, said.

"If we see that there’s a risk that these supply side shocks start to translate into domestic price pressures, for instance through pressure on wages or changes in inflation expectations... then we should act," he told a conference.

(Reporting by Balazs Koranyi; Editing by Gareth Jones)