European Central Bank chief economist Philip Lane said the euro zone has not yet shown strong second-round inflation effects from high energy costs. Speaking to Italian news agency ANSA, Lane said the strength of the pass-through to the wider economy remains uncertain.
European Central Bank chief economist Philip Lane said high euro zone energy costs have yet to generate strong second-round inflation effects, even though the strength of that pass-through to the rest of the economy stays uncertain. Lane made the comments in an interview with Italian news agency ANSA published Tuesday.
According to Reuters, Lane said the ECB has not seen so far very strong second-round effects: "We have not seen so far very strong second-round effects." He added that the central bank continues to monitor them.
Lane also pushed back on framing the current situation in binary terms. Even though he is a promoter of the ECB's inflation scenarios, he said it would be too simplistic to say the euro zone sits in either the adverse or the baseline scenario.
Energy prices remain high, but the strength of their pass-through to the wider economy is still uncertain, Lane said.
Source: Investing.com
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