Lane, Chief Economist of the European Central Bank: Moderate policy response is the appropriate choice to control inflation

智通财经2026/10/05 08:36

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(1) The chief economist of the European Central Bank, Lane, stated that as the ECB assesses the impact of a second wave of energy shocks on the economy, adopting a moderate policy response is the appropriate choice to control inflation. (2) She noted that after the outbreak of the Iran conflict, oil and gas prices surged for the first time, and the eurozone economy demonstrated stronger-than-expected resilience. However, this new round of energy price pressure not only carries upside risks for inflation but could also dampen economic growth, and therefore requires close monitoring. (3) She added that in addition to continuously assessing the transmission process of the first round of shocks, it is necessary to determine whether the second round will have a stronger impact on economic activity and inflation dynamics than the first. Our monetary policy remains on a “middle path,” and a moderate policy response will help keep inflation at a reasonable level. (4) The European Central Bank has raised interest rates twice to ensure that medium-term inflation falls back to the 2% target. Although policymakers, including Lane, said that the recent increase in energy costs has not yet affected inflation expectations, they remain vigilant, and both economists and financial markets expect the ECB to further tighten policy.

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