ECB's Lane confident of hitting inflation goal despite noisy data
Governor Also Bank Is Euro Turmoil Of France, Ireland Markets, Former In Around Disorderly The Not Central Said The Bond The Of Zone Centred Ongoing
The European Central Bank is confident that inflation will fall back to its 2% target next year despite some "noisy" inflation along the way, the ECB's chief economist Philip Lane said.
"There's a lot, a fair amount of confidence about the destination in the second half of next year," Lane told Reuters. "So we do have to interpret the incoming data carefully, but to differentiate the noise and the signal."
"It's fair to say momentum at the start of the year in services was relatively high," he said. "So I think this is an example where we need to see the momentum come down in the second half of the year."
The former Governor of the Central Bank of Ireland also said the ongoing turmoil in euro zone bond markets, centred around France, is not disorderly, effectively playing down the need for the ECB to intervene.
"What we are seeing in the markets is a repricing but it is not in the world of disorderly markets right now."
The ECB has set as a condition for any intervention in bond markets that there is an unwarranted and disorderly move in yields.
Reuters