ECB Chief Economist Philip Lane has indicated in a Bloomberg TV interview that another rate hike in May is appropriate, given the current economic landscape. He stated, “As of now, two weeks away, I think the baseline is that we should increase interest rates in May but what we do in terms of scale, I’m not going to set a default number.”
However, Lane emphasized the importance of waiting for more data before making a final decision. He highlighted the central bank’s reliance on data, saying, “We are now in an intense phase of data dependence. I’m very much in wait-and-see mode.”
He also discussed the ECB’s deposit rate, which is currently at 3%, and suggested that it would likely remain at its peak for a prolonged period if inflation returns to 2% and the eurozone avoids a recession, as officials predict. “It would be appropriate to keep rates at the plateau level for a while before returning back to normal,” Lane added.
