ECB Chief Economist Philip Lane: Restrictive Monetary Policy Needed to Tackle Inflation

by bollywoodfever · 24/08/2024

ECB Chief Economist Philip Lane emphasizes the need for continued restrictive monetary policy to combat inflation, while cautioning against prolonged high rates that could lead to below-target inflation.

Bollywood Fever: The European Central Bank’s effort to lower inflation back to its 2% target is still uncertain, necessitating a continued restrictive monetary policy, according to ECB Chief Economist Philip Lane.

Speaking at the U.S. Federal Reserve’s annual economic symposium in Jackson Hole on Saturday, Lane highlighted the ongoing challenge.

ECB Chief Economist Philip Lane: Restrictive Monetary Policy Needed to Tackle Inflation

“The return to target is not yet secure,” Lane stated. “The monetary stance will have to remain in restrictive territory for as long as needed to shepherd the disinflation process towards a timely return to the target.”

However, Lane also cautioned against maintaining high interest rates for too long, warning that this approach could result in inflation falling chronically below the desired target.

Also Read other news articles, Nigerian Businesses Expect Naira to Strengthen in 2025 Despite Current Depreciation, CBN Survey Reveals