ECB’s Lane: Confidence in getting inflation lower is improving
The European Central Bank (ECB) Chief Economist Philip Lane said on Monday that the recent Eurozone economic data have made him more certain that inflation is returning to the ECB 2% target, boosting the possibility of a first interest-rate cut in June, per Bloomberg.
Key quotes
“Both the April flash estimate for euro area inflation and the Q1 GDP number that came out improve my confidence that inflation should return to target in a timely manner,” he was cited as saying. “So, as of today, my personal confidence level has improved compared with our April meeting. But of course, more data will arrive between now and June.”
“We should not exaggerate the impact,” he said. “The US economy and US interest rates affect the euro area in different ways, and essentially, these different mechanisms work in opposite directions.”
“It is a month-by-month assessment, but in the longer term we have to accept that we live in a world that is going to face a lot of geopolitical tensions over a number of years.”
Market reaction
These comments have little to no market reaction to the Euro. The EUR/USD pair is trading at 1.0763, adding 0.02% on the day.
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