ECB Chief Economist Philip Lane: Don't Be Fooled By The Economic Recovery
ECB chief economist Philip Lane on Friday urged not to get too excited about the Euro zone's economic recovery. So the door remains open for a new round of stimulus in the coming months.
A day earlier, ECB President Christine Lagarde surprised investors by being optimistic about the recovery in the Eurozone, which has driven the Euro higher.
Lane's post published on the ECB website recalls a communication error that Lagarde made in March. Lane then convinced investors that the ECB was ready to support heavily indebted countries like Italy after Lagarde made it clear that the Bank would not do so.
"It should be absolutely clear that delusions are not worth it," lane wrote on Friday morning.
On Thursday, analysts warned that Lagarde's words about the prospects for the Eurozone economy sounded too optimistic. It signaled that managers did not discuss new stimulus measures and were not concerned about the fall in inflation in August to 0.2%.
It seems that lane published a post to draw attention to such concerns. He stressed that the recovery of the region's economy is uneven, and recently there has been a weakness in the service sector, which is so sufficient for it. According to him, inflation is too low, which is partly due to the recent growth of the Euro.
"In the coming months, more complete information will be available based on which monetary policy can be calibrated," Lane wrote.