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ECB: Lane Suggests ECB Will Not Deviate From Data-dependent Approach

ECB

No obvious policy signals on an initial glance at Lane's speech. "PMI" is also not mentioned. In the following paragraph, Lane appears to align with Executive Board member Schnabel in avoiding the use of forward guidance when setting policy under uncertainty (in contrast to the dovish Panetta last week):

"Stressing state dependency and optionality, in line with the meeting-by-meeting and data-dependent approach, can help to avoid embracing a view or a policy approach, which could reduce our room for manoeuvre in conditions that we were unable to anticipate. This ability to react flexibly is likely to be particularly useful when economic outcomes are dynamic and there is high uncertainty surrounding the outlook for inflation."

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No obvious policy signals on an initial glance at Lane's speech. "PMI" is also not mentioned. In the following paragraph, Lane appears to align with Executive Board member Schnabel in avoiding the use of forward guidance when setting policy under uncertainty (in contrast to the dovish Panetta last week):

"Stressing state dependency and optionality, in line with the meeting-by-meeting and data-dependent approach, can help to avoid embracing a view or a policy approach, which could reduce our room for manoeuvre in conditions that we were unable to anticipate. This ability to react flexibly is likely to be particularly useful when economic outcomes are dynamic and there is high uncertainty surrounding the outlook for inflation."

Keep reading...Show less