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Keynote speech by Philip R. Lane, Member of the Executive Board of the ECB, at the European Investment Bank Chief Economists’ Meeting
Luxembourg, 16 September 2024
Introduction
My aim today is to cover two topics. First, I will briefly explain our decision last week to lower the deposit facility rate – the rate through which we steer the monetary policy stance – by 25 basis points. Second, I will outline some considerations that will be covered by the 2025 assessment of our monetary policy strategy.
The monetary policy decision
Based on our assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission, our confidence in a timely return of inflation to target is supported by declining uncertainty around our projections, including their stability across projection rounds, and by inflation expectations across a range of indicators that remain aligned with a timely convergence to target.[1]
The incoming data on wages and…