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Lane (ECB): “Rethinking” monetary policy if outlook deteriorates rapidly – finance and economics

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(Teleborsa) – Regarding the current monetary policy track of the European Central Bank (ECB), “We will try to close net assets if the first decision maintains a moderate inflation outlook, based on the sequence. Third quarter purchases”. “even though, If the outlook for inflation weakens, we will have to rethink.He said Philip LaneECB Chief Economist in an interview with CNBC.

Line’s comments follow the release of Eurostat dataEurozone inflation in March. Trend data is + 7.5% higher than the + 6.6% of the consensus, compared to + 5.9% the previous month. “These are very high figures“It’s important to take the time, make good use of the meetings we have planned, and make long – term exercises to summarize and reach a clear assessment,” he added.

One of the crises facing the ECB is how to deal with the huge levels of inflation, given the slowdown in the economy. “We have opposing forces – Line explained – We have an energy shock at the potential for second-rate impacts on rising inflation; On the other hand, there is a weakening of sentiment related to the fact that high energy prices, especially in a year or two, will affect real incomes, and we will have negative pressure on inflation potential. ”

As a result, “added the Irish economist.Lots of work, lots of analysis, lots of discussions Under the total influence of those opposing forces “.

In a speech on Thursday, Lane had previously said that the ECB should be prepared to adjust monetary policy in both directions. Maintain a “bilateral” option.

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