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Lane Says ECB Can Respond In Either Direction to Global Conditions

ECB
  • Policy implications from faster Fed tightening? Will be able to adjust policy in either direction in response to global financing conditions, other global CB action. ECB assess domestic impact on inflation dynamics, economic factors and indirect spillovers (e.g. On other dollarised territories). These factors integrated into ECB decision making.
  • The sequencing element for CB activity (i.e. Fed first or ECB first?) - market tries to foresee, but Lane plays down importance of sequencing in decision making. Mentions pre-organized meeting calendars etc.

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