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.