The Strategist

ECB chief economist links timing of rate cuts to macro statistics

02/15/2024 - 05:23

Philip Lane, the senior economist at the European Central Bank, told Spanish TV channel RTVE that the bank's next move will be to lower key interest rates. The date of the first reduction will rely on newly received statistical data.
"The campaign against inflation is gathering steam, but it will require more time. Our goal is to return inflation to the 2% target. We think the pricing trend is positive," he stated, cautioning against making rate cuts too soon or too late.

The ECB held all three of its major interest rates steady at the conclusion of its January meeting. The deposit rate is 4%, the benchmark lending rate is 4.5%, and the marginal lending rate is 4.75%.

Christine Lagarde, the head of the regulator, stated that the ECB Governing Council believes it is too soon to talk about loosening monetary policy, although she made a suggestion that rates might be lowered this summer.