The ECB is attempting to curb inflation, which has been high for months, by raising interest rates. Now their chief economist gave an indication of whether the ECB will continue on this course.
In the fight against inflation in the euro zone, the chief economist of the European Central Bank (ECB), Philip Lane, sees light at the end of the tunnel. “We expect core inflation to ease over the autumn,” he said in an interview with Ireland’s The Currency magazine published on Tuesday. Core inflation describes inflation excluding goods that are particularly susceptible to fluctuations, such as energy and food.
Lane said it is important to understand that the current inflation is a temporary episode. The second-round effects that follow the shock wave of the past will peak this year, he said.
The economist thus fueled the hope that the ECB would not be able to raise interest rates further at its meeting next week. The euro, which generally benefits from rising interest rates, slipped against the US dollar to its lowest level since mid-June.
Source: Stern
