European Central Bank (ECB) Chief Economist Philip Lane, speaking at a conference in Vilnius on Tuesday, detailed the ongoing struggle with inflation, which remains above the 2% target despite ten borrowing cost increases. Lane projected that the target would be achieved by the third quarter of 2025 and stated that deposit rates would be maintained at 4% until mid-2024.
Lane noted that consumer-price growth is moderating at a rate of 4.3%, with core inflation sitting at 4.5%. He emphasized the unsustainability of the current low gas prices and predicted a forthcoming rise, underlining the need for careful energy monitoring.
Gediminas Simkus, the Lithuanian central bank chief, also present at the conference, acknowledged enduring "lines of resistance" in relation to inflation.
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