ECB’s Lane: Rising Long-Term Rates to Weigh on Growth, Dampen Inflation Pass-Through

TREE NEWS reports: European Central Bank chief economist Philip Lane said rising long-term interest rates will curb economic growth and make the pass-through to inflation weaker than expected. Core inflation gauges show no clear upward shift in the medium-term outlook, he said, adding that the ECB remains on a “middle path” for monetary policy where a moderate response is appropriate. A second wave of energy supply shocks would pose upside inflation risks and downside growth risks.