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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by Jyotsna V
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