ECB chief economist Lane said the bank will reassess and could adjust its policy
stance in September, with rate decisions remaining data-dependent and reactive,
avoiding over- or under-reaction. He described the shock as medium-sized and
said a September policy move would hinge largely on whether oil and gas prices
remain elevated or a durable solution reopens Strait of Hormuz supplies. The ECB
previously kept rates on hold to assess the Middle East conflict’s impact on
euro-area inflation and growth; Lane added that euro-area expansion is mainly
supported by domestic demand and that global trade is not dominated by the US.
