In a presentation to the Brookings institution in Washington, ECB chief economist Philip Lane said:

  • The euro area is facing a more extended slowdown than previously expected
  • The convergence of inflation towards the inflation aim has recently slowed and partly reversed
  • The ECB’s monetary policy measures remain effective in fostering a reacceleration of growth and, thereby, inflation convergence
  • A highly accommodative stance of monetary policy will be necessary for a prolonged period of time
  • The more fiscal policy contributes to boosting long-term growth potential and providing cyclical stabilisation, the quicker will be the effects of monetary policy interventions on the economy and inflation

Full presentation here.


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