TELETRADER News
12/6/2022, 7:21 AM
(Source: TeleTrader)
Lane: More rate increases will be necessary
European Central Bank chief economist Philip Lane (pictured) stated Tuesday that even though the bank has done "a lot" in fighting inflation, "more increases will be necessary."
There is an implicit necessity to understand the inflation outlook and the risks taken when "setting the interest rate on a meeting-by-meeting basis," he added. "But it is also true that we need to recognize that the interest rate decisions we have already made will help to reduce the inflation rate next year and the year after that."
On the inflation rate, the banker stressed that he doesn't rule out some extra inflation for 2023. Therefore, the path to put down the levels of that metric back to the 2% target will take time.