ECB’s Lane says the Bank is not pre-committing to a particular rate path – data dependent

European Central Bank chief economist Lane speaks in a virtual lecture at University of Stanford in Stanford, USA

• Given the lags in transmission, the tightening effects from our past
  interest rate hikes are still unfolding
• Expectations of
  future inflation normalise further, leaving nominal rates unchanged
  implies a mechanical increase in real interest rates
• There are two-sided risks in proceeding through the next phase

• Moving from one meeting to the next meeting and from one projection
  round to the next projection round allows for the accumulation of
  further data that can help inform the rate decision

This article was written by Eamonn Sheridan at www.forexlive.com.