ECB Chief Economist Philip R. Lane presented the institution’s latest economic projections on June 16 in London, forecasting a gradual decline in euro area inflation from 3.0% in 2026 to 2.3% in 2027 and 2.0% by 2028. The deposit facility rate currently stands at 2.25%. Lane emphasized that energy shocks remain a persistent source of inflationary pressure and that geopolitical tensions in the Middle East represent a significant risk factor for achieving this target. The ECB’s Digital Euro project is advancing as a parallel initiative, though Lane chose not to integrate it into the central bank’s core macroeconomic analysis. Three key indicators warrant monitoring: energy price evolution, the pace of rate cuts, and the Digital Euro development timeline.
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