Select Language

ECB's Lane: Central bank must stand ready to counter any deviation in CPI

blockHeadVisual
  1. HOME
  2. Get information
  3. World FX news
  4. ECB's Lane: Central bank must stand ready to counter any deviation in CPI

World FX news

search
Breaking news

ECB's Lane: Central bank must stand ready to counter any deviation in CPI

  • X
  • facebook
  • LINE
  • RSS
  • X
  • facebook
  • LINE
  • RSS
New update 2025.07.01 15:58
ECB's Lane: Central bank must stand ready to counter any deviation in CPI

update 2025.07.01 15:58

European Central Bank chief economist Philip Lane said on Tuesday that the ECB must stand ready to counter any deviation in CPI.

Key quotes

This is going to be a lively 5 years.
The ECB must stand ready to counter any deviation in CPI.
10% tariffs are part of the ECB baseline.
Looks like inflation is around the target.

Market reaction  

At the time of writing, EUR/USD is trading 0.01% lower on the day at 1.1785. 

ECB FAQs

The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.

In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets - usually government or corporate bonds - from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used it during the Great Financial Crisis in 2009-11, in 2015 when inflation remained stubbornly low, as well as during the covid pandemic.

Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the European Central Bank (ECB) purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the ECB stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive (or bullish) for the Euro.

Date

Created

 : 2025.07.01

Update

Last updated

 : 2025.07.01

Related articles

Show more

Writer

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?
No loading Yes loading

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Previous article

prev

ECB's Nagel: Policy is now in neutral zone

Next article

ECB's Wunsch on interest rates: If we would have to move, it would be down

prev

Most viewed

USD: What comes after the weak start to the year? - Commerzbank

The euro gained 13.8% against the US dollar in the first six months of this year, marking the best start to a year against the greenback since its introduction. In the last three months alone, the euro gained 9%, representing one of its best quarters against the US dollar.
New
update2025.07.01 20:07

RUB: Crisis whispers in the ear - Commerzbank

USD/RUB and EUR/RUB are not market-driven or floating exchange rates. Even so, at this time, these exchange rates are reflecting excessive optimism that the Ukraine war may somehow end and that some of the harsh sanctions on Russia may be removed.
New
update2025.07.01 19:50

GBP/USD stretches higher, approaching 1.3800 with the US Dollar at long-term lows

The Pound is accelerating its uptrend on Tuesday, unaffected by rather downbeat UK manufacturing PMI data.
New
update2025.07.01 19:50

USD/CNH: Likely to drop below 7.1500 - UOB Group

There is potential for US Dollar (USD) to drop below 7.1500 against Chinese Yuan (CNH); it is unclear whether there is sufficient momentum for it to reach 7.1450.
New
update2025.07.01 19:41

USD/JPY: Any further decline is unlikely to reach 142.70 - UOB Group

Increase in momentum may lead to US Dollar (USD) breaking below 143.50 against Japanese Yen (JPY); any further decline is unlikely to reach 142.70. In the longer run, buildup in momentum could trigger further USD declines toward 142.70, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
update2025.07.01 19:39

USD/CNH: Measured pace - OCBC

USD/CNH continued to trade lower in subdued ranges near its recent lows. USD/CNH last at 7.1560 levels. Daily momentum is showing tentative signs of turning mild bearish but decline in RSI shows signs of moderation, OCBC's FX analysts Frances Cheung and Christopher Wong note.
New
update2025.07.01 19:35

Brent crude faces renewed pressure after 200-DMA rejection - Société Générale

Brent crude's failed attempt to hold above its 200-day moving average has reinforced downside risks, setting the stage for a continued retreat toward key support levels.
New
update2025.07.01 19:27

SNB's Zanetti: Negative interest rates are an option

Swiss National Bank (SNB) governing board member Atillio Zanetti said on Tuesday, "negative interest rates are an option."
New
update2025.07.01 19:14

US Dollar Index (DXY) dives below 96.00 following upbeat Eurozone data

The US Dollar remains on the back foot on Tuesday, weighed by renewed concerns about the US fiscal health, growing trade uncertainty and investors' bets on Fed cuts, as President Trump continues attacking the Fed Chair, Jerome Powell.In this context, the US Dollar Index (DXY) extended its decline fo
New
update2025.07.01 19:06

ECB's Kazaks: Any further rate cut would be small

European Central Bank (ECB) policymaker Martins Kazaks on Tuesday, "any further rate cut would be small."
New
update2025.07.01 19:05

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

arw
  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Line

Line
Facebook

Facebook
X

Twitter
Cancel