The ECB must avoid a short-term reaction to inflation-Lane | Photo credits: Central Bank of Ireland
FRANKFURT, April 6 (Reuters) – Inflation in the euro zone is currently too high but the European Central Bank (ECB) sees inflation over the medium term so it should not react only to its current level, Philip said on Wednesday. Lane, the institution’s chief economist.
“We cannot react to inflation today because there are lags in the way monetary policy works,” he said during a debate.
“The nature of the supply shock means that the initial inflationary pressure (..) is set to decrease over time, which it is important not to overreact to this surge in inflation,” he said. added.
(Report Balazs Koranyi, French version Marc Angrand)