Interest rate message from ECB Chief Economist Lane

The European Central Bank’s chief economist Philip Lane said there were risks in cutting interest rates too early or too late. The European Central Bank’s chief economist Philip Lane said there were risks in cutting interest rates too early or too late. Lane told Spain’s RTVE broadcaster that while the current trend in inflation was very good, more time was needed to ensure that price growth returned to the 2% target. Lane said the exact timing of monetary easing would depend on data and the path forward for the decline in the deposit rate, currently at a record 4%, would be determined on a case-by-case basis. European Central Bank policymakers are looking at April or June for a possible first cut in borrowing costs.