It should retain the optionality of tuning speed

European Central Bank (ECB) chief economist Philip Lane said on Monday that the ECB should retain discretion over the speed of policy adjustments, according to Reuters.

Key recommendations

“Incoming earnings and earnings data were in line with expectations.”

“Negotiated wage growth will remain high and volatile for the remainder of the year.”

“We will also look at possible enhancements to the existing analytical toolset, including forecasting techniques.”

“A gradual approach to reducing stringency will be appropriate if incoming data is in line with the baseline projection.”

Market reaction

EUR/USD showed no immediate reaction to these comments and was last seen up 0.45% on the day at 1.1125.