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10/19, 4:49 PM (Source: TeleTrader)
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ECB's Lane: Conditions for interest rate rise not met

European Central Bank board member Philip Lane reiterated on Tuesday that current headline inflation is being driven by transitory factors and that Europe's situation was different from that of the United States.

Addressing a joint Bank of Finland and European Money and Finance Forum (SUERF) virtual conference, Lane detailed three conditions that the ECB had set in their forward guidance as needing to be met before interest rates would be lifted and surmised that they had in fact not been.

Lane concluded that "it’s important to recognize overshoots and undershoots, so long as they’re transitory, do not require the same monetary policy response as a more permanent risk to price security."

Breaking the News / IB