ECB’s Lane Says Upper Range of Neutral Has Crept Up to 2.5%

ECB Chief Economist Philip Lane said the neutral rate of interest could be as high as 2.5%, implying that another rate hike may still not restrain eurozone growth. The comment reinforces a hawkish policy backdrop and keeps attention on the ECB's tightening path and its implications for borrowing costs and yields.

Analysis

ECB Chief Economist Philip Lane said the neutral rate of interest could be as high as 2.5%, implying that another rate hike may still not restrain eurozone growth. The comment reinforces a hawkish policy backdrop and keeps attention on the ECB's tightening path and its implications for borrowing costs and yields.