ECB’s Philip Lane more certain inflation returning to goal

The data did little to change expectations that ECB officials will lower borrowing costs at their June 6 meeting for the first time after their barrage of hikes

Philip Lane, chief economist of the European Central Bank (ECB): 'My personal confidence level has improved compared with our April meeting.' Picture: Alex Kraus/Bloomberg

European Central Bank Chief Economist Philip Lane said recent euro-area data have made him more certain that inflation is returning to the 2% goal, raising the likelihood of a first interest rate cut in June.

Speaking in an interview with Spanish newspaper El Confidencial, the former Governor of the Central Bank of Ireland cited a report on consumer prices last week that showed pressures in the service sector eased for the first time since November. That was “an important initial step in the next phase of bringing inflation down,” according to Lane.