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Lane (ECB) sees a new rate hike appropriate if conditions do not change

Date: June 17, 2024 Time: 03:20:08

The Irish representative on the board of the European Central Bank (ECB) and chief economist of the institution, Philip Lane, has accepted that a further rise in interest rates at the July meeting may seem appropriate if there is no substantial change in the conditions, while it has limited itself to pointing out that “September is very far away” so the entity must carefully follow the evolution of the data.

“July is just around the corner, unless there is a change in material, another increase seems appropriate and September seems to me to be so far away that we have to see what happens,” Lane said at an event in Madrid. , Organized by the Rafael del Pino Foundation.

In this sense, Lane has felt his confidence that inflation will moderate to reach the target “quite quickly” in the coming years, something that is reflected in the behavior of 10-year sovereign bonds.

In any case, the Irish economist has avoided comparisons with the US Federal Reserve, which last week announced a pause in rate hikes, adding that the ECB will continue to watch the data coming in “and if appropriate there will be another hike.” in the future if necessary. “We go meeting by meeting and what they pressured in one meeting does not determine what we are going to decide in the next one,” he assured.

Also, unlike what happened this spring in the United States, Lane has highlighted that, so far in Europe, the adjustment of the financial sector to the rise in interest rates has been “smooth”.

“We have seen reallocations, it is true, but we have not seen anything too dramatic, so for now we can say that the adjustment has been smooth at high rates,” he indicated.

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Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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