ECB's Lane Says Open to Looking Through Shocks, Sees Neutral Rate Upper End at 2.5%

ECB Chief Economist Philip Lane indicated the central bank is willing to look through shocks that are not long-lived. He noted that even with falling oil prices, food prices are expected to continue rising.

Lane described last week's rate hike as aimed at containing the spread of the energy shock. He added that the tightening comes from a position of a firming neutral stance, and the upper end of the neutral rate range has crept up to 2.5% from 2.25%.