Eurozone risks are fading, says Philip Lane

The governor of the Central Bank has said risks in the eurozone are receding but caution and vigilance should still remain.

Philip Lane, who is also an ECB governing council member, said risks to the eurozone economy are still not balanced and the ECB needs to see evidence that wage pressures are feeding into inflation before it shifts its policy stance.

“There is still downside but the tail risk ... is fading and the momentum is back towards balance. So still below balance but moving towards balance,” he said.