ECB chief economist, Philip Lane, speaks in London
- ECB mandate for price stability is unconditional
- Incoming information signals more extended slowdown in Eurozone growth dynamics
- This slowdown is mainly due to external developments
- Forward guidance is a very powerful instrument, remains our principal tool
- The case for monetary policy response was clear
- ECB can do QE within current limits for an extended period
- ECB policies create a cushion to insulate the economy from the materialisation of downside risks
- Full speech
Nothing new on offer here from Lane. He's essentially just reiterating the baseline view adopted by the central bank at its decision last week. There will be a Q&A session to follow after his speech so perhaps there will be more 'juicy' remarks to come.
