ECB Chief Economist Lane Signals December Rate Hike Is Prudent If Data Hold

European Central Bank Chief Economist Philip Lane said it would be prudent to raise interest rates again in December if incoming economic data do not shift materially from their current trajectory. Lane's comments, made on November 10, represent a clear conditional signal from one of the ECB's most influential policymakers ahead of the bank's final scheduled meeting of the year.

Lane flagged that inflation is likely to come in a little bit over 4% at year-end and that peak inflation has further to run, reinforcing the case for continued policy tightening. He also cautioned that oil prices could move significantly between now and the December meeting, leaving the door open for the data-dependent outlook to change before a final decision is taken.