ECB level decisions that are sensitive to changes in inflation risk, said Lane

The European central bank will pay attention to every shift in the risk profile of the Euro zone inflation and the case for further policy loading will be strengthened if the risk underlines the target increases, said ECB Economist Chief Philip Lane.

“The shift in risk distribution will also be important for our tariff decisions: Increasing the possibility or intensity of risk factors for decline will strengthen the case that a slightly lower policy rate may better protect the medium -term inflation target,” Lane said in his speech in Frankfurt on Monday.

“Or, an increase in the possibility or intensity of reverse risk factors will indicate that maintaining the current level of policy will be appropriate in the near future,” he added.
Source: Reuters