ECB’s Lane: Monetary policy should not remain restrictive for too long

Speaking to Les Echos on Monday, European Central Bank (ECB) Chief Economist Philip Lane said that “monetary policy should not remain restrictive for too long.”

Additional quotes

The job is not done yet on inflation, services prices still need to come down.

Inflation is close to the 2% target.

Barring new geopolitical or political risks, a large part of the final stage in bringing inflation back to 2% target will be completed next year.

Monetary policy must respond to both downside and upside risks to inflation.

We have been clear that we are moving on a meeting-by-meeting basis.

Don't see spread fragmentation that would dissuade investors for the time being.

Market reaction

EUR/USD continues to hold sizeable gains at around 1.0465, at the time of writing, up 0.48% on a daily basis.