“We do think the last cycle is done, bringing inflation down from the peak of 10[%], back to 2%, that element is over,” Philip Lane told CNBC.”We do think the last cycle is done, bringing inflation down from the peak of 10[%], back to 2%, that element is over,” Philip Lane told CNBC.
The European Central Bank’s latest period of monetary tightening is “done,” the institution’s chief economist Philip Lane told CNBC on Tuesday.
“We do think the last cycle is done, bringing inflation down from the peak of 10[%], back to 2%, that element is over, but on a forward-looking basis we do need to stand ready to make sure that any deviation we see does not become embedded, does not change the medium-term picture,” Lane said in an interview with CNBC’s Annette Weisbach at the ECB’s annual forum in Sintra, Portugal.
The ECB needs to remain data-dependent but will not respond to any isolated “blip” in inflation going forward, Lane said.
The euro zone inflation rate came in at 1.9% for May, below the central bank’s 2% target. Its key interest rate has meanwhile been cut to 2%, with money market pricing currently suggesting expectations for a further quarter-point rate trim to 1.75% by the end of the year.
This is a breaking news story and will be updated shortly.
