Central Banks
ECB’s Lane Says Return to 2% Inflation Target Not Yet Secure
- Policy must remain restrictive as long as necessary, he says
- Too high rates for too long pose risks for economy, Lane warns
Philip Lane
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank’s battle to return inflation to 2% isn’t won and interest rates must stay as high as necessary to achieve that goal, without harming the economy unduly, according to Chief Economist Philip Lane.
“The return to target is not yet secure,” Lane said Saturday. “In particular, the monetary stance will have to remain in restrictive territory for as long as is needed to shepherd the disinflation process towards a timely return to the target.”