European Central Bank Chief Economist Lane: September will be the next key point for interest rate policy

European Central Bank Chief Economist Lane stated that the ECB will reassess and may adjust its policy stance in September. Interest rate decisions will continue to be based on economic data: "Our work is more about responding, neither overreacting nor underreacting." He described the current situation as a "medium-scale shock," noting that whether to adjust policy in September largely depends on whether oil and gas prices remain high or if a lasting solution can be found to reopen the supply from the Strait of Hormuz. Previously, the ECB kept interest rates unchanged to assess the impact of the Middle East conflict on eurozone inflation and economic growth. Lane also added that the European economy is mainly supported by domestic demand: "Europe trades with the whole world; the United States is not the dominant factor in international trade."