Highlights from Lane interview

Key excerpts from his answers below (note these are not the full answers to any questions, for more see the full interview here):

• Asked whether if lockdowns are extended forecasts will be revised lower: "If the lockdown lasts a few weeks longer it won't have much of an impact on the final growth picture in 2021. We think a lot of the pandemic shock will have been offset by the end of the year."
• Asked if ECB debt purchases can be effective if bond yields increase due to inflation expectations rising he said: "There is more than one mechanism through which asset purchasing can influence the market. But at the same time, it is crystal clear that we are not engaged in yield curve control, in the sense that we want to keep a particular yield constant. With the purchase programme we are trying to move the curve in a certain direction and with enough force to support inflation dynamics."
• Q: You always repeat this, but is lowering rates further really an option? A: "We wouldn't say we could use this tool if we didn't believe it. When we say that we can move rates lower [the deposit facility rate is currently -0.5 per cent], we do all sorts of calculations and analytics to make sure that it's a credible and honest statement."