European Central Bank chief economist Philip Lane says the economy will likely take time to reflect “second-round” or knock-on effects from higher energy prices. Speaking during an interview at the ECB Forum on Central Banking in Sintra, Portugal, Lane indicates that policymakers should not assume the full impact will appear immediately. He also emphasizes that the ECB is not “boxed in” on the path for interest rates. In this view, officials should avoid committing to a specific rate trajectory before the energy-related effects feed through to broader prices and wages. Lane’s comments, reported by Bloomberg and echoed by the Financial Post, frame the issue as one of timing and policy flexibility. The ECB’s reaction, he suggests, should account for how and when higher energy costs translate into wider inflation pressures, rather than being predetermined by a fixed interest-rate schedule in the interim.
ECB’s Philip Lane Says Energy Price Effects Will Take Time, Won’t Lock Rate Path
European Central Bank chief economist Philip Lane says the economy will likely take time to reflect “second-round” or knock-on effects from higher energy prices. Speaking during an interview at the EC...
- ECB chief economist Philip Lane says higher energy prices’ second-round effects will take time to show up.
- Lane characterizes the impact as “knock-on” effects that develop gradually.
- He says ECB policymakers will not be boxed in to a specific interest-rate path.
- The comments are made in connection with the ECB Forum on Central Banking in Sintra, Portugal.
- Multiple outlets report Lane’s view on timing and maintaining flexibility on rates.
European Central Bank Chief Economist Philip Lane said knock-on effects from higher energy prices will take a while to show up and that policymakers won’t lock themselves into a path for interest rates in the meantime.
2 hours agoEuropean Central Bank Chief Economist Philip Lane says second-round effects from higher energy prices may take some time to show up, and that policymakers won't be boxed into a particular path on interest rates. He made the comments during an interview with Bloomberg's Francine Lacqua at the ECB Forum on Central Banking in Sintra, Portugal. (Source: Bloomberg)
2 hours agoEuropean Central Bank Chief Economist Philip Lane said knock-on effects from higher energy prices will take a while to show up and that policymakers won’t lock themselves into a path for interest rates in the meantime.
2 hours ago
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