Comments from the ECB's Lane
- Important that bank respond to significant deviation of inflation from target
- Labor market and consumption remain strong in Europe, but manufacturing in an 'asymmetric' slowdown
- Current outlook for Europe is 'intermediate' with growth expected to continue but risks tilted to the downside
- Tiering is to protect credit transmission, not bank earnings or any particular class of depositors
Lane said something similar yesterday. It makes you wonder what a dramatic policy move would look like.
