Highlights of Lane's FT interview (2/2)

Lane was also asked about the impact of the exchange rate and he gave an answer consistent with that seen from the ECB in recent years - that it's not the decisive factor in policy and that commodities prices matter more.

• "It’s on the list of factors we look at but it’s definitely not at the top of the list. The euro area is a continental-sized economy. But there is a spillover from global monetary policy, because the rate of growth in the global economy and the rate of price increases of global commodities and other tradable goods are globally determined."
• "We also have to take into account the downward pressure on inflation from tightening by other central banks around the world, which generates weaker demand for our exports and lower import prices. But this is not particularly via the euro-dollar rate, but rather via the global dynamics for commodities and tradable goods."