European Central Bank (ECB) Chief Economist Philip Lane said on Thursday that he believes the euro area inflation may stabilize around the 2% target, adding that the central bank is ready to revise the policy settings.

Key quotes

“It is especially important to remain data-dependent.”

“Optionality needs to be two-sided.”

“ECB should be fully prepared to revise policy settings in the event of energy price shock.”

“It is plausible that medium-term inflation will not revert back to pre-pandemic levels.”