ECB's Lane: Calibrating volume of asset purchases important to ensure policy is accommodative

European Central Bank chief economist Philip Lane said on Monday that calibrating the volume of asset purchases plays an important role in ensuring that the monetary stance is sufficiently accommodative to deliver the timely attainment of the medium-term 2% target.

Key quotes per Reuters

"If the economy is close to the effective lower bound, it is vitally important to adopt especially forceful or persistent monetary policy action to avoid negative deviations from the inflation target becoming entrenched."

"The compression of term premia through the duration extraction channel plays a quantitatively significant role in determining longer-term yields."

"An energy price shock can simultaneously raise headline inflation but exert downward pressure on the path of underlying inflation."

"A one-off shift in the level of wages as part of the adjustment to a transitory unexpected increase in the price level does not imply a trend shift in the path of underlying inflation."

"Tracking wage outcomes and differentiating between transitory and persistent shifts in the growth rate of wages will play an important role."

Market reaction

These comments don't seem to be having a significant impact on the common currency's performance against its rivals. As of writing, the EUR/USD pair was up 0.06% on the day at 1.1575.