European Central Bank (ECB) Chief Economist Philp Lane said in an MNI interview on Wednesday that “it is prudent to maintain meeting-by-meeting approach.”
Additional takeaways
Also prudent not to pre-commit to any particular rate path.
Disinflation process is well on track.
Domestic inflation should come down.
Financing conditions remain restrictive.
Determined to ensure that inflation stabilises at 2%.
The argument for cutting by 50 bps was to show we are no longer restrictive.
Forward rates curve shows that delivering on 2% target requires more rate cuts to come.
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