ECBs Lane in a Faz interview says:
- No one is talking about dramatic rate cuts
- We are in a zone of normal central banking
- ECB task is to bring inflation back to 2%
- That task is mostly completed and inflation to remain close to 2% in the coming months
- Service inflation still too high
- The main focus of ECB monetary policy is on the medium-term horizon.
- The neutral interest rate can only be estimated and it is a long-term concept.
- In the long term the neutral interest rate could be around where we are now.
This article was written by Greg Michalowski at www.forexlive.com.
