(Finance) – Interest rate cuts in the Euroland are not a topic of discussion for the short term. The said it ECB chief economist, Philip Lanein light of the latest inflation data which, in fact, confirmed the Eurotower’s opinion.
“The December inflation data largely confirms our assessment of the December meeting and our December projections. On this basis, cutting interest rates is not a short-term issue,” Lane stressed at an event in Dublin.
The reduction in the cost of borrowing will be taken into consideration by continuing to monitor the information that comes in, he added. “Once we develop sufficient confidence that we are reaching the 2% inflation target, the topic of cutting rates will obviously come back to the fore. But this is tentative speculation at the moment and we will have to see the data coming in before we go any further.”