(Finance) – In case inflation remained above expectations, the ECB would tighten its monetary policy. She said it Philip Lanechief economist of the European central bank, in an interview with the Lithuanian newspaper Verslo inios also stressing that “such a scenario seems unlikely for now”.
Inflation shot up in December 5%, the highest ever recorded for the euro area, however, according to the ECB’s forecasts, it should fall below the 2% target by the fourth quarter, even if for many it is an overly optimistic projection. “If we saw data coming in indicating inflation that remains too high compared to the 2% target, obviously we would respond” – Lane said.
“In that case we will then adjust all of our policies to achieve this, whether it be asset purchases, targeted financing auctions or interest rates,” he concluded.