Interest Rates

Philip Lane: ECB to make ‘judgement call’ on interest rates soon

Philip Lane said that he expected inflation to stabilise at 2 per cent in the next year

Philip Lane, ECB chief economist, said that while there was ‘good progress’ on inflation, questions remained before the central bank cuts interest rates. Picture: Conor McCabe

Decreasing inflation will soon allow the European Central Bank (ECB) to cut interest rates, according to its chief economist.

Speaking on the ECB Podcast, Philip Lane said that having reached 2.6 per cent in February, inflation would average at 2.3 per cent in 2024 – allowing the ECB to make a “judgement call” as it neared its 2 per cent target.

“At some point, the improvement in inflation will allow us to roll back some ...