ECB’s Lane Defends ‘Hold-Steady’ Stance Amid Rate-Hike Talk
- Chief economist warns of double shock if rates raised
- EU forecasts back view that inflation will ease below target
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European Central Bank Chief Economist Philip Lane defended his view that record euro-area inflation is set to ease without tougher action, despite other policy makers turning more hawkish and some floating an increase in interest rates as soon as this year.
Lane stressed that the supply disruptions contributing to soaring prices are a global problem, warning that a rate hike would risk another jolt to the region’s economy as it looks to cement its recovery from the pandemic.