According to Phillip Lane, chief economist of the European Central Bank (ECB), interest rates are currently “ballpark” neutral, as reported by Reuters early on Tuesday.
According to the Financial Times, the ECB policymaker adds, “We haven’t seen ‘normal’ in Europe for a long time.”
“Beginning in the summer of 2021, inflation pressures began to increase.
A long-term misdiagnosis led to what occurred in the 1970s.”
“We have demonstrated our commitment to meeting the inflation objective.
Energy costs have significantly decreased since December.
We are operating with a great deal of uncertainty.”
“We shouldn’t be so sure about where rates need to go because of this.
However, interest rates must be higher than they are right now.”
