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
