“At some point, policy needs to be driven by upcoming risks rather than being backward-looking,” European Central Bank (ECB) Chief Economist Phillip Lane said in a Financial Times (FT) interview on Monday.
Additional quotes
But that is once we are sure inflation is in line to hit 2% target.
There is a little bit of distance to go in that regard.
Services inflation needs to come down further.
Once disinflation process is completed, monetary policy needs to be forward-looking.
As data dependence falls down in priority, the new challenge will be to assess incoming risks.
That will still be done on a meeting-by-meeting basis.
Market reaction
EUR/USD was last seen trading 0.48% lower on the day at 1.0525.
Source: https://www.fxstreet.com/news/ecbs-lane-at-some-point-policy-needs-to-be-driven-by-upcoming-risks-202412020540