ECB Chief Economist Philip Lane signals a potential December rate hike, citing year-end inflation projections of over 4% and expectations for accelerating core and food price growth.
ECB Chief Economist Philip Lane said on Tuesday it is 'prudent to hike in December if data don't shift' and expects inflation 'a little bit over 4% at year-end'. A near-term rate-hike signal from the ECB's chief economist supports a stronger euro in the coming days.
Lane's hawkish remarks (prudent to hike in December, inflation over 4% by year-end) raise expectations of tighter ECB policy, which supports EUR/USD from the euro side, all else equal, especially against a US side not discussed in the article.
ECB Chief Economist Philip Lane stated on Tuesday that a December interest rate hike remains prudent, provided economic data does not shift. Lane projects inflation will reach slightly above 4% by year-end, while noting that core and food inflation are expected to quicken.
The ECB's chief economist signalled another interest rate hike as soon as December, with inflation above 4% by year-end. Higher expected rates tend to attract money into the currency.
No. Lane said it is prudent to hike in December only 'if data don't shift', so incoming economic data could still change the outcome.
He said it is 'prudent to hike in December if data don't shift' and that inflation is likely 'a little bit' over 4% at year-end.
No, it only supports the euro side of the pair; the dollar side and incoming data also matter.