ECB Chief Economist Philip Lane indicated that it’s “appropriate” to raise interest rates further beyond March meeting. But the “exact calibration” will depend on the upcoming macroeconomic projections and incoming data on inflation and the monetary transmission mechanism.
Lane said in a speech, “the current information on underlying inflation pressures suggests that it will be appropriate to raise rates further beyond our March meeting”.
“By bringing the key policy rates to a sufficiently restrictive level and fostering a period of below-trend growth through the dampening of demand, we will counter-act above-target medium-term inflation pressures and also ensure that the prolonged phase of above-target inflation does not become embedded through a de-anchoring of inflation expectations,” he explained.
