ECB Chief Economist Philip Lane said in a Bloomberg TV interview, “the story is not the issue about are we going to move away from -0.5% for the deposit rate. The big issue which we do need to still be data-dependent about is the scale and the timing of interest-rate normalization.”
“In the near-term, yes, inflation is very high and that does carry its own risk of momentum,” Lane admitted. “On the other hand the high energy prices are eating into disposable incomes, it’s reducing consumption and the war has a scope – especially depending on how it goes – in terms of mapping into lower investment, lower consumption, confidence effects and extra pressure on energy.”
