ECB's Lane says he is comfortable that hiking rates makes sense under milder scenario

Newsquawk Staff · 18 Jun 2026, 12:46 UTC

Open minded to looking through shocks if they are not long lived.
Even if oil is falling, think food will keep going up.
Hike aims to contain spread of energy shock.
Current situation is a medium shock.
Tightened last week from a position of firming neutral.
Think upper end of neutral has crept up to 2.5% from 2.25%.
Does not want to yank rates around.
Employment stable and real incomes keep going up.
Euro appreciation still putting a downward pressure on prices.
Sees a prolonged period of high inflation.
It is viable for the Federal Reserve and the European Central Bank to pursue divergent interest rate paths.

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US Market Open, 21 Oct, 10:29 UTC · what it led with

Pakistan Army Chief Munir brought the "final warning" from the United States to Iranian officials, which called on Iran to submit to the US demands for concessions on the nuclear issue before taking any other steps.
The UK government has approved the Jackdaw North Sea gas field.

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Fed’s Waller (voter) says more rate hikes are likely needed to tame inflation, but there is flexibility over the pace and hikes do not need to be consecutive.
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