June 28, 2023

European Central Bank Chief Economist Philip Lane on Tuesday warned markets against pricing in cuts to interest rates within the next two years.

Earlier this month, the ECB hiked its main rate by 25 basis points to 3.5%, making the latest in a series of increases since July 2022, as policymakers strive to reel in record-high inflation in the euro zone.

Headline inflation across the bloc came in at an annual 6.1% in May, down from 7% the previous month. Core inflation, which excludes volatile food and energy prices, was 5.3% year on year. Both remained well above the ECB’s 2% target.

Read more:

https://www.cnbc.com/2023/06/28/ecb-chief-economist-warns-markets-against-pricing-in-rate-cuts-within-the-next-two-years.html