ECB's Philip Lane sees good case for economy 'soft landing'

But he warned about a new 'energy shock' aggravated by war in the Middle East

Philip Lane said 4% was "not a forever rate" and it was "not normal".

European Central Bank chief economist Philip Lane said on Thursday there was still a "good case" for the economy to avoid a recession despite a tightening credit market.

Lending in the euro zone has come to a standstill as the ECB embarked on its longest and steepest ever series of interest rate hikes in a bid to bring down high inflation. Lane said he remained confident the eurozone's economy could avoid a credit crunch as companies were not bracing for a recession.