European Central Bank Chief Economist Philip Lane said on Monday that policymakers will follow a data-dependent approach in every policy session in the coming months and any increase in the degree of downside risks could warrant a modest reduction in interest rates.
"In addition to the evolution of the baseline inflation outlook, shifts in the risk distribution will also matter for our rate decisions: an increase in the likelihood or intensity of downside risk factors would strengthen the case that a slightly-lower policy rate might better protect the medium-term inflation target," Lane said in speech at an ECB conference in Frankfurt.
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May 01, 2026 15:54 ET Central banks dominated the economics news flow this week with almost all major ones announcing their latest policy decisions and many boosted expectations for a rate hike in June. In other news, several countries released the preliminary data for first quarter economic growth. In the U.S., comments by Fed Chair Jerome Powell were also in focus as his term ends this month.