Frankfurt-European Central Bank (ECB) chief economist Philipp Lane revealed in a private meeting with German economists that the ECB expects to hit its 2 percent inflation target by 2025, the Financial Times said in a report on Thursday. That was partially disputed by the bank.
The ECB did not make this long-term forecast public, meaning Lane could face questions from the public and lawmakers about the report, which reveals that he disclosed unpublished information to a select group of individuals.
The Times said Lane told German economists that the ECB’s “medium-term reference scenario” saw inflation rebound to 2 percent shortly after the end of its current forecast period.
The ECB, which initially declined to comment, later disputed the story as being false.
“Mr. Lane did not say in any conversations with analysts that the euro area would reach 2 percent inflation shortly after the end of the ECB’s projection horizon,” an ECB spokesman said in a written statement.
The spokesperson, however, did not comment on the 2025 date quoted by the newspaper when asked.
Earlier this year, Lane was forced to postpone face-to-face meetings with investors immediately after policy meetings, sparking public criticism of such engagements. But he is still meeting with groups of economists.
The ECB updated its forecasts last week as it eased the pace of its emergency bond purchases. It now sees inflation at 2.2 percent this year, 1.7 percent the next, and 1.5 percent in 2023.
The central bank has promised not to raise rates until it sees inflation reaching 2 percent well before the end of its forecast horizon, which is usually between two and three years. Money markets hike rates two years from now.
This News Originally From – The Epoch Times