ECB needs assurance on inflation before any rate cut, says Lane

ECB officials are increasingly confident that inflation is heading back to 2% and are gearing up to start lowering rates later this year

'We need to be further along in the disinflation process,' says Philip Lane. Picture: Sam Boal

The European Central Bank requires more assurance that inflation is returning to its target in order for policymakers to be able to lower interest rates, according to chief economist Philip Lane.

Signalling again that he prefers not to rush policy easing, Mr Lane said in a speech that while the disinflation process may be unfolding more quickly than anticipated at the moment, the medium-term outlook is less clear.