ECB's Lane: May decision will depend on three factors

• It will depend on the inflation outlook
• Then, we have to diagnose the underlying dynamic, not just the overall inflation rate
• And through that, assess how quickly inflation is going to fall
• Thirdly, is how quickly these interest rate increases are restricting the economy and bringing down inflation
• For these reasons, we have no longer indicated or pre-announced what the expectation is for the next meeting or for the upcoming meetings
• The focus should be on understanding every data point that comes in
• If by May, the macro projections remain on track, then a rate hike will be appropriate
• Full transcript

That's a comprehensive summary of the viewpoint by the ECB at the moment but the fact that most policymakers are angling the narrative to focus on core inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term does implicitly say that they are looking for another rate hike at least.