🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

Number of rate cuts will depend on inflation data, ECB's Lane says

Published 02/13/2024, 12:34 PM
Updated 02/13/2024, 12:35 PM
© Reuters. FILE PHOTO: European Central Bank chief economist Philip Lane speaks during a lecture at the University of Cyprus in Nicosia, Cyprus April 5, 2023. REUTERS/Yiannis Kourtoglou/File Photo

MADRID (Reuters) - The number of interest rate cuts in the euro zone will depend on inflation data, though prices seem to be moving in the right direction, European Central Bank chief economist Philip Lane said on Tuesday.

The ECB has kept rates steady at a record high since September but slowing growth and easing price pressures are fuelling rate cut talk with investors expecting the first move in April or June.

"The trend is very good, we want it to continue and we have some time left. You could hear me and other members of the Governing Council saying that we think the next move is to cut interest rates, but the exact timing depends on the data," Lane told Spanish state television broadcaster TVE in an interview.

Lane said that the institution's objective was to bring inflation back to around 2% and that it was still closer to 3%.

"The number of rate cuts we make will depend on how much progress we make towards our target," Lane said.

© Reuters. FILE PHOTO: European Central Bank chief economist Philip Lane speaks during a lecture at the University of Cyprus in Nicosia, Cyprus April 5, 2023. REUTERS/Yiannis Kourtoglou/File Photo

The ECB will next meet on March 7 when new economic projections are also presented, seen as a likely trigger for at least a discussion about rate cuts over the following months.

Consumer inflation in the 20 nations sharing the euro dipped to 2.8% in January from 2.9% in December.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.