THE European Central Bank should keep cutting interest rates gradually but it does not need to set a schedule since conditions could change between moves, ECB chief economist Philip Lane said in a speech on Monday (Sep 16).
“A gradual approach to dialling back restrictiveness will be appropriate if the incoming data are in line with the baseline projection,” Lane said in Luxembourg. “We should retain optionality about the speed of adjustment.”
He agued that the ECB may need to speed up cuts if the economy faltered or disinflation accelerated but the bank would have to slow down in case of surprises going in the other direction. REUTERS
