Central Banks

ECB Needs More Confidence Inflation Is Headed to 2%, Lane Says

Chief economist tells Croatian TV prices are a smaller problem
Markets are betting that the ECB will start rate cuts in April

Philip Lane
Photographer: Alex Kraus/Bloomberg

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By Jan Bratanic

January 31, 2024 at 6:36 PM UTC

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European Central Bank officials need more evidence that inflation is returning to their target before they decide it’s safe to begin loosening monetary policy, according to Chief Economist Philip Lane.

While the growth in consumer prices will be a “smaller problem” in 2024 than in recent years — when it peaked at more than 10% — it remains a challenge for the ECB, Lane said Wednesday.