ECB’s Lane says rate rises will be gradual

European Central Bank Chief Economist Philip Lane said normalization of monetary policy will be gradual.

Speaking to Spanish newspaper Cinco Dias Lane said, “Normalization has a natural focus on moving in units of 25 basis points, so increases of 25 basis points in the July and September meetings are a benchmark pace.”

He added, “Any discussion about other moves would have to make the case for moving more strongly than this sequence of hikes in July and September. Our current assessment of the situation, where we think the medium-term inflation outlook is in line with our 2% target, calls for a gradual approach to normalization”.