Economics
ECB Officials Warn Not to Overreact to Single Data Points
- Incoming chief economist says euro area still ‘pretty strong’
- Policy makers will have more information after March forecasts
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European Central Bank officials warned against overreacting to individual points of incoming data when setting monetary policy as the current environment is highly uncertain.
While the ECB has acknowledged a shift to the downside in recent weeks, the domestic euro-area economy remains “pretty strong,” according to Irish governor Philip Lane, who is currently running for a seat on the institution’s Executive Board. His comments were echoed by Germany’s Jens Weidmann, who told students in Pretoria that the region is going through a “soft patch” and there “are good reasons” to believe inflation is still on track toward the ECB’s goal.