FRANKFURT (Reuters) – The European Central Bank may ease policy further this year, but must find a middle ground where it does not trigger a recession and also cause unnecessary delays in curbing inflation, ECB chief economist Philip Lane told an Austrian newspaper.
“If interest rates fall too quickly, it will be difficult to get services inflation under control,” Der Standard quoted Lane as saying on Monday.
“But we also don’t want rates to stay too high for too long, because that would weaken the momentum of inflation in such a way that the disinflation process would not stop at 2%, but inflation could fall materially below target,” Lane added.
