Return to ECB's Inflation Target Looks Uncertain, Says Lane
According to the chief economist of the European Central Bank (ECB), Philip Lane, the return to the inflation target of 2% does not appear to be secure. Lane noted that despite the efforts of regulators to combat inflation, which has recently increased significantly, the current economic conditions still do not allow for a confident assertion regarding the achievement of this goal.
In his statement, Lane emphasized the importance of continuing to monitor economic indicators and how they may influence the central bank's decisions on interest rates. He added that there are a number of risks, including geopolitical instability and global financial trends, that could impact inflation in Europe. Lane believes that time is needed to fully assess the impact of the ECB's previous decisions on the economy and inflation.
The economic situation in the eurozone remains complex, and although the ECB is taking measures aimed at curbing inflation, such as raising interest rates, the results have not yet yielded stable effects. Lane pointed out that the regulator will be prepared to adapt its policy depending on changes in the economic situation.
These comments from Lane come amid rising concerns about how quickly the situation may improve and whether the measures being taken by the ECB are sufficient to achieve the target inflation benchmarks. The importance of controlling inflation has become especially relevant in light of recent economic fluctuations in Europe and global markets.
Experts emphasize that there are still no clear factors that could confirm the existence of sustainable changes in inflation trends. This means that the central bank must act cautiously and judiciously to avoid overreacting to short-term changes in economic data.
In conclusion, Lane urged patience and attention to long-term economic trends rather than short-term changes, as guarantees of achieving the inflation target level remain in question.
