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ECB’s rate path hinges on how far inflation spreads, Lane says

By Thomson Reuters Nov 10, 2026 | 11:53 AM

LONDON, Nov 10 (Reuters) – Energy prices may be falling but the European ​Central Bank’s interest rate ‌decisions will depend on how strongly the recent surge in fuel costs spreads to ‌wages ​and other ⁠prices, the ECB’s ⁠chief economist said on Tuesday.

“If energy prices reverse – and they’re already reversing in ​the last week, if that continues – you ⁠could see headline (inflation) ⁠falling but core ​inflation moving up as the ​second-round effects from what’s already ‌happened percolate,” Philip Lane told a conference in London.

“So I’m not going ⁠to convert it into a timeline for what exactly we do, ⁠but ‌I would say ⁠people should be ​looking ‌out for: ‘is it coming ​in ⁠stronger or weaker than your projections?’.”

(Reporting by David Milliken. Writing by Francesco Canepa in Frankfurt. Editing by ​Mark Potter)