ECB’s Lane: Will be continuing to keep an eye on rising yields day by day

“We will be continuing to keep an eye on the yields surge day by day,” the European Central Bank (ECB) Chief Economist Philip Lane said in an interview with Expansión

Further comments

Effect of lockdown on the economy is less than it was last year.

We think a lot of the pandemic shock will be offset by the end of the year.

What we are seeing now is not a significant, persistent change in inflation path.

Excessive tightening in yields is inconsistent in fighting shock to inflation path.

We will be continuing to keep an eye on the yields surge day by day.

There is no risk of overheating the economy with stimulus.

The recovery will be faster if fiscal policy makes its contribution.

Lowering rates further is still a credible option, all tools are still available.