‘It Looks Like Another Hike in July Will Be Appropriate’, ECB’s Lane Says

19 June 2023

By Xavier D’Arcy – FRANKFURT (Econostream) – A July rate hike from the European Central Bank would be appropriate, Executive Board member Philip Lane said on Monday.

Speaking on a panel in Madrid, he refused to be drawn out on the ECB’s decisions in September, referring to the Governing Council’s data-dependent, meeting-by-meeting approach to monetary policy.

‘September will be decided in September, July will be decided in July,’, he said, adding nonetheless that ‘it looks like another hike in July will be appropriate.’

Regarding a further hike beyond July, ‘basically we will see in September, that's months away in terms of all the data we're going to learn about between now and September, we'll also have a full scale forecasting round', he said.

‘What the market is confident in, and I think correctly because we'll have something to do about it, is that inflation will come down to our target fairly quickly in the next couple of years to 2% thereabouts’, he added.