ECB's Lane says that EZ inflation being one percentage point above the ECB's 2% target, is a lot

When a chief economist characterises the size of an overshoot in such direct terms, the remark functions as a signal on the reaction function rather than on any single data point: officials in this role have historically been the channel through which a council frames its tolerance band before the more formal communication arrives. The phrasing matters less for its arithmetic than for what it implies about persistence, since tolerance for a moderate overshoot and concern at a larger one is precisely the distinction that separates a council content to look through supply-driven inflation from one weighing the pace and size of further tightening. In past episodes of this kind, commentary stressing the scale of the miss has tended to steepen front-end rate expectations and firm the currency, with the effect concentrated in the near-dated policy path rather than at the long end. What follows in the usual sequence is whether other council members echo the framing, and how it sits against the next inflation prints and any updated staff projections, since language of this kind from the economics function often precedes a shift embedded in those forecasts. As commentary rather than decision, the signal is directional: it argues against an imminent dovish turn and raises the sensitivity of the next release calendar.