© Reuters. FILE PHOTO: European Central Bank Chief Economist Philip Lane speaks during a Reuters Newsmaker event in New York, U.S., September 27, 2019. REUTERS/Gary He
MADRID (Reuters) – The European Central Bank should start raising its policy rates in the third quarter but the path beyond September is clouded by the war in Ukraine and its impact on inflation, the ECB’s chief economist Philip Lane said on Wednesday.
“What happens next is state contingent,” Lane said at an event in Madrid.
“The uncertainty about the war… in interaction with the uncertainty about how quickly inflation will come down calls for optionality, flexibility and gradualism.”
ECB’s Lane says war clouds policy outlook beyond September