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ECB's Lane in Q&A as Part of MNI Webinar Highlights So Far:

ECB
  • Lane emphasises that all the main projections are based on prevailing financial conditions. On that basis, what we're seeing is that there's a significant fraction out there that see inflation settling well below 2% and another significant faction seeing inflation settling at target of 2%.
  • High inflation rates have MonPol implications. Need to have policy actions that slow down the economy. In terms of approach, gradualism makes sense at this stage.
  • There's been no material change in the ECB's reaction function or strategy.

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