Frankfurt — European Central Bank (ECB) Chief Economist Philip Lane reveals in private meeting with German economist that ECB expects to reach its 2% inflation target by 2025 The Financial Times said in a report partially disputed by the Bank on Thursday.
The ECB did not publish this long-term forecast. This suggests that Lane may face questions from the general public and lawmakers about the report, revealing unpublished information to specific groups of individuals.
The Times added that Lane told German economists that the ECB’s “medium-term reference scenario” showed inflation recovered to 2% shortly after the end of the current forecast period.
The ECB, which initially declined to comment, later disputed the story and said it was inaccurate.
“Mr. Lane did not say in a conversation with analysts that the euro area would reach 2% inflation shortly after the ECB’s forecast period ended,” an ECB spokesman said in writing. increase.
However, the spokesman did not comment on the date of 2025 mentioned in the treatise when asked.
Earlier this year, Lane was forced to suspend a one-on-one meeting with investors shortly after the policy meeting. This is partly due to public criticism of such involvement. But he is still meeting with a group of economists.
The ECB updated its forecasts last week as it slowed down its emergency bond purchases. Inflation is currently expected to be 2.2% this year, 1.7% next, and 1.5% in 2023.
The central bank has promised not to raise rates until inflation reaches 2% long before the end of the forecast period (usually two to three years). Money markets were priced with a rate hike two years later.