ECB's latest rate cut will help inflation back to 2%, Lane says
Published by Global Banking & Finance Review®
Posted on June 11, 2025
1 min readLast updated: January 23, 2026
Published by Global Banking & Finance Review®
Posted on June 11, 2025
1 min readLast updated: January 23, 2026
The ECB's rate cut aims to stabilize inflation at 2%, ensuring temporary deviations don't become long-term, according to Philip Lane.
FRANKFURT (Reuters) -The European Central Bank's latest rate cut will help inflation bounce back to its 2% goal after an expected sag over the next year and a half, the ECB's chief economist Philip Lane said on Wednesday.
"This cut helps ensure that the projected negative inflation deviation over the next eighteen months remains temporary and does not convert into a longer-term deviation of inflation from the target," Lane said. "This cut also guards against any uncertainty about our reaction function."
(Reporting by Francesco CanepaEditing by Peter Graff)
The European Central Bank aims to stabilize inflation at a target of 2%.
Philip Lane is the chief economist of the European Central Bank.
The rate cut aims to ensure that any projected negative inflation deviation remains temporary and does not lead to a longer-term deviation from the target.
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