ECB’s Philip Lane warns of 'bumpy' inflation decline but hints at rate cut in June

Central Bank governor Gabriel Makhlouf said policymakers must work together to mitigate risks that may arise from the 'rapidly' growing non-bank sector

Philip Lane said: 'We will continue to follow a data-dependent and meeting-by-meeting approach to determining the appropriate level and duration of restriction.'

European Central Bank (ECB) chief economist Philip Lane said the retreat in consumer-price growth is unlikely to be smooth.

While Mr Lane expressed confidence that inflation is heading back to the 2% target in 2025, he said gains in wage and service costs remain elevated. He re-iterated the ECB’s latest policy statement that hints at a cut in interest rates when officials meet in June.