ECB's Lane: Convergence of inflation towards aim has recently slowed, partly reversed

ECB chief economist, Philip Lane, speaks in London

  • ECB mandate for price stability is unconditional

  • Incoming information signals more extended slowdown in Eurozone growth dynamics

  • This slowdown is mainly due to external developments

  • Forward guidance is a very powerful instrument, remains our principal tool

  • The case for monetary policy response was clear

  • ECB can do QE within current limits for an extended period

  • ECB policies create a cushion to insulate the economy from the materialisation of downside risks

  • Full speech

Nothing new on offer here from Lane. He's essentially just reiterating the baseline view adopted by the central bank at its decision last week. There will be a Q&A session to follow after his speech so perhaps there will be more 'juicy' remarks to come.