Reported about 2 months ago
European Central Bank Chief Economist Philip Lane stated that achieving the 2% inflation target remains uncertain, and interest rates will need to stay elevated as necessary to ensure a sustainable return to that target. While acknowledging the potential dangers of maintaining tight policies amid a slowing euro-zone economy, Lane emphasizes that achieving disinflation effectively is critical to avoid chronic below-target inflation in the medium term. His remarks come as market expectations rise for potential rate cuts in upcoming ECB meetings.
Source: YAHOO