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 g

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.