(Finance) – Looking ahead, the ECB “will consider an approach of gradual removal of restrictions as appropriate if the data that will arrive will be in line with the baseline forecast scenario”. This is what was stated by the Chief Economist of the Monetary Institution, Philip Lane during his speech at the meeting of chief economists of European investment banks.
“At the same time we must maintain the optionality on the speed of adjustment – he added Lane –. On the one hand, if the data point to a sustained acceleration in the disinflationary process or a material decline in the speed of economic recovery, a faster adjustment would be warranted. On the other hand, if the data point to slower-than-expected disinflation or faster economic growth, then a slower pace of adjustment might be appropriate.”
“These considerations – he concluded Lane – strengthen the validity of the chosen decision-making approach: that is, deciding ‘on a case-by-case basis’ at each Governing Council, based on the evolution of the data, with which the ECB “maintains optionality and flexibility for future decisions”.