Comments from Lane in an interview
The ECB posted an interview with chief economist Philip Lane on its website. Some highlights:
- We expected Q1 will have seen a slight contraction
- We think the economy will be growing quite strongly in May and June and that momentum will continue
- evidence is coming in more and more that the corporate sector purchase programme plays a very important role
- Asked about the Riksbank not going back to negative rates, he says 'I don't think this is a statement that negative interest rates are ineffective'
- we do think there are potential gains to society from digital currencies
Lane talked about one of the coming challenges to the recovery:
We've seen record-breaking fiscal responses to the crisis. I think this is really going to be a big issue for the next year or two. How do we navigate not just the economic rebound, but also the correct sequencing and timing of how all of those policy measures will make sure not just that we have a rebound, but that we have a recovery to a sustainable post-pandemic economy?
