FRANKFURT (Reuters) – Europe’s recent slowdown implies only limited cuts in European Central Bank forecasts, and the current policy strategy should be able to handle this, Irish central bank chief and ECB board seat candidate Philip Lane said on Tuesday.
“There’s been a sequence of negative shocks in recent times,” Lane said in a confirmation hearing at the European Parliament’s Committee on Economic and Monetary Affairs.
“But I think all this is in the neighbourhood of reasonably small adjustments to the forecasts,” Lane said. “The current strategy can cater to limited downside revisions.”
Lane will replace Peter Praet on the ECB’s board from June 1 and is almost certain to be appointed by ECB President Mario Draghi as the bank’s next chief economist.
(Reporting by Balazs Koranyi; Editing by Kevin Liffey)