European Central Bank chief economist Lane speaks in a virtual lecture at University of Stanford in Stanford, USA
- Given the lags in transmission, the tightening effects from our past interest rate hikes are still unfolding
- Expectations of future inflation normalise further, leaving nominal rates unchanged implies a mechanical increase in real interest rates
- There are two-sided risks in proceeding through the next phase
Moving from one meeting to the next meeting and from one projection round to the next projection round allows for the accumulation of further data that can help inform the rate decision
