ECB’s Lane Says Rates Will Be Restrictive as Long as Necessary
- Wage and profit dynamics among main open questions, he says
- ‘Extended phase of uncertainty’ ahead on disinflation process
Philip Lane
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European Central Bank Chief Economist Philip Lane said interest rates have reached a level that could help inflation return to target if held for a sufficient amount of time, but stressed officials will be data dependent when assessing the restrictiveness of policy.
“Our future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary,” Lane said in a speech in New York. “The high level of two-sided uncertainty around the baseline means that we will remain data dependent in determining the appropriate level and duration of restrictiveness in our monetary stance.”