ECB Governing Council member Lane: Weak economic growth in Europe may further reduce inflation

ChainCatcher news, ECB Governing Council member Lane stated that the inflation rate across the Eurozone is steadily returning to the target level of 2%, but weak economic growth poses a risk of further price declines. Lane said, "The disinflation process in the Eurozone is on track. Over the past few months, the growth outlook has clearly weakened, which may also increase the pressure for inflation to fall further."

He believes that interest rate cuts are still ongoing, but he will not disclose how fast or how far they need to go. Lane stated that since our interest rates are still in a restrictive range, the direction of interest rate changes is clear. He also mentioned that the speed and extent of rate cuts will depend on the inflation outlook, the dynamics of underlying inflation, and the strength of monetary policy transmission.