European Central Bank (ECB) chief economist Philip Lane says the bank should maintain its restrictive interest rate policy this year, even as he advocates cutting interest rates in June.
In an interview with the Financial Times published on Monday, Lane said that barring any major surprises, the ECB would cut interest rates in June, although it would be “difficult and gradual” from then on, so its policy should remain unchanged throughout. year.
“The scale of inflation that is still being seen in services and domestic inflation clearly means that we must be restrictive this year because we must ensure that the still significant price pressures do not have too much of an impact on price increases,” he stated. .
Regarding wage growth in the eurozone, which rose 4.69% year on year between January and March, Lane said they had already anticipated this trend and that data continued to point to a slowdown, although wages would only normalize next year . 2026.
“In general, we said that inflation will increase this year and that wages will also increase to a certain extent. But there is a downward trend, although there are generally fluctuations around this trend,” he said.
Author: Lusa
Source: CM Jornal
I’m Tifany Hawkins, a professional journalist with years of experience in news reporting. I currently work for a prominent news website and write articles for 24NewsReporters as an author. My primary focus is on economy-related stories, though I am also experienced in several other areas of journalism.