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ECB chief economist Philip Lane warned the central bank could still raise interest rates if inflation’s impact lasts longer than expected, keeping tightening risks alive even after March’s pause. Summary ECB’s Philip Lane says rates could rise if inflation’s impact lasts longer.ecb. Comments reinforce data‑dependent stance after March decision to hold rates.ecb. Markets already pricing in up to three hikes this year amid energy risks. European Central Bank chief economist Philip Lane has warned that interest rates may yet rise if inflation in the euro area proves more persistent than policymakers currently expect, keeping the door open to further tightening even after the ECB held borrowing costs steady in March. According to Jinshi’s summary of Lane’s latest remarks, the Governing Council member said that “if the impact of inflation lasts for a longer period, the European Central Bank will consider raising interest rates,” underlining that the fight against above‑target price growth is not over. His comments echo recent guidance from ECB President Christine Lagarde, who told the Financial Times that “if we expect inflation to deviate significantly and persistently from target, the response must be appropriately forceful or persistent,” signalling that rate hikes remain on the table if price pressures re‑accelerate. In its March policy decision, the ECB left its three key interest rates unchanged and reiterated that it is “determined to ensure that inflation stabilises at the 2% target in the medium term,” while acknowledging that the conflict in the Middle East has created upside risks for inflation via higher energy costs. The central bank’s latest projections see headline inflation averaging 2.6% in 2026 and hovering around 2% in 2027 and 2028, but officials including Lane have flagged that wage dynamics and firms’ price‑setting plans will be watched closely at “every meeting” to judge whether those forecasts remain credible.…

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Filed under: News - @ April 14, 2026 7:32 pm