The ECB has been advised to take a cautious and gradual approach to reducing interest rates, according to Chief Economist Philip Lane.
Lane emphasized the need for policymakers to be flexible in response to various risks, such as geopolitical tensions and evolving global political dynamics. His comments suggest that a measured strategy will be crucial for navigating the current economic environment.
The ECB's ability to adapt to changing circumstances will be vital as it considers future adjustments to monetary policy.