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The
ECB has all but promised a rate cut on June 6, provided incoming
data strengthen policymakers' belief that inflation will head
back to its 2% target by the middle of next year.
"Both the April flash estimate for euro area inflation and the
first quarter GDP number that came out improve my confidence
that inflation should return to target in a timely manner," Lane
told the newspaper in an interview.
"So, as of today, my personal confidence level has improved
compared with our April meeting," Lane said, adding that more
crucial data is still to be published in the weeks ahead.
Investors also seem to think that a cut in June is all but a
done deal, but doubts about subsequent moves have increased in
recent weeks after the U.S. Federal Reserve signaled that its
own policy easing could be delayed.
While the ECB insists it is not dependent on the Fed, a widening
interest rate gap between the world's biggest central banks
would weaken the euro and boost European inflation, likely
limiting the ECB's appetite for going it alone.
Lane said that April inflation data finally showed progress on
services prices but the bank would continue to focus on services
to make sure it did not derail disinflation later on.
Overall inflation stood at 2.4% last month and the ECB expects
it to fluctuate around this level for most of this year, before
falling again in 2025.
(Reporting by Balazs Koranyi; Editing by Alexander Smith)
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