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The last period of interventions in the monetary policy of the European Central Bank to introduce inflation into the check “Made”, – said the chief economist of Philip Lane on Tuesday.
“We believe that the last cycle is done, which reduces the inflation from peak 10 (%), back to 2%, this element is over, but on a promising basis we need to stand ready to make sure that any deviation we see does not become decorated, does not change the medium-term picture,” Lane said in an interview with Annbc Annette.
Euro -zone inflation rate Came 1.9% for May, below 2% of the Central Bank. Him The main interest rate meanwhile was reduced to 2% From peak in the amount of 4% over the last year, and the prices for the cash market are currently expected expectations for the next finish in a quarter up to 1.75% by the end of the year.
Asked what it means “do” with the cycle, Lane said that it means that the ECB managed to remove the price strikes of 2021 and 2022 – which followed from the energy crisis and the supply chain restrictions from the system. However, he warned that the system was already “new blows” to which the monetary policy will need to be adapted, and that “there may be some cyclical movements a little lower.”
Instead of dealing with a price shock, the ECB is now monitoring the energy market market, exchange rates and inflation expectations to make sure it does not “overcome” small inflation deviations. Also, no medium -term changes to the worldview or “sustainable” factors affecting the domestic economy will also notice any medium -term changes.
Risks leaned toward the lack
Also in Sintro, the head of the Belgian Central Bank, Pierre Wunsh, said CNBC that it risks inflation and growth in the euro area, now tilted.
“There is a wide consensus that we are very close to the target (2% ECB inflation), the work is mostly done,” Wunsh said on Monday night. In Europe, there are two years of “relatively slow growth”, but any recovery may be arrested by global uncertainty, he also noted.
He added that “If we need to move more, it is likely to be down, another incision. I don’t ask for one, but I think if there are any discussions, it’s more in this direction.”
In the coming months, the ECB will monitor economic data to find out if there are improvements in the eurozone zone, especially in production – and the Central Bank may be “a little more favorable” if it does not, Wunsh said.
