ECB's Lane: ECB policy must preserve favourable financial conditions
Comments by ECB chief economist, Philip Lane
Some token remarks there by Lane but essentially he's trying to get the message across that easy policy is going to stay here for quite some time to come, even when the vaccine has been rolled out and we have moved on from the virus crisis.
- Recovery path will still be long and fraught with risks
- Monetary policy continues to have a clear role in ensuring the preservation of favourable financial conditions
- This will remain an essential priority even in the post-pandemic phase, given that the macroeconomic hit from the pandemic is likely to persist
- Tolerating a longer phase of even lower inflation than originally envisaged would be costly and risky