Wage growth in the euro zone will come, albeit with a lag, and generate more underlying inflation if the bloc's economic upswing continues, European Central Bank policymaker Ewald Nowotny said today. 

"We have discussed quiet intensively why wage increases are relatively subdued, but in my view this is a matter of some time lag," Nowotny, Austria's central bank chief, said. 

"If the upswing gets more consolidated, I think we can expect higher wage dynamics, which means that also core inflation might get stronger," Nowotny added. 

The ECB has repeatedly stressed that weak wage growth is keeping a lid on inflation and it should not remove stimulus until there is a convincing and durable upswing in underlying prices. 

Regarding growth, Nowotny said there has been a steady flow of positive news but the ECB needs to be sure the improvement is lasting.