ECB Chief Economist Philip Lane said, “the red zone for everyone is if inflation became persistent at a number that’s immoderately above the inflation target. That’s a very far distance from where the euro area is.” He added, “we have to be the counterweight, honestly, in this debate.”
On inflation, he also said, “there’s solid reasons to believe that a lot of this is to do with the reopening of the economy and there’s very solid reasons to believe there’s a significant transitory component.”
