It is prudent to maintain meeting-by-meeting approach

European Central Bank (ECB) Chief Economist Philp Lane said in an MNI interview on Wednesday that “it is prudent to maintain meeting-by-meeting approach.”

Additional takeaways

Also prudent not to pre-commit to any particular rate path.

Disinflation process is well on track.

Domestic inflation should come down.

Financing conditions remain restrictive.

Determined to ensure that inflation stabilises at 2%.

The argument for cutting by 50 bps was to show we are no longer restrictive.

Forward rates curve shows that delivering on 2% target requires more rate cuts to come.

 

Source: https://www.fxstreet.com/news/ecbs-lane-it-is-prudent-to-maintain-meeting-by-meeting-approach-202412180907