ECB: Europe's economy stalling due to energy shock

Thursday, 29. September 2022 19:13

European Central Bank (ECB) Executive Board member Philip Lane stressed on Thursday that the European economy is "stalling" as a result of the energy shock.

Speaking at the policy panel at the Inflation: Drivers and Dynamics 2022, the central bank's governor explained the energy crisis is a driving "recession force" in Europe, emphasizing that having a collective response to the energy shock with appropriate measures is critical, to lower the demand for "sky-high expensive" energy and cut its prices.

In addition, Lane highlighted that the European Central Bank is attempting to reach a "neutral rate," although it remains unclear whether such a policy would be enough to address the raging inflation, adding that it will be impossible to bring it down to its target until the monetary policy is normalized.

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Baha Breaking News (BBN) / AB