{"id":14812,"date":"2023-04-18T16:08:41","date_gmt":"2023-04-18T16:08:41","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/ecbs-lane-backs-may\/"},"modified":"2023-04-18T16:09:42","modified_gmt":"2023-04-18T16:09:42","slug":"ecbs-lane-backs-may","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/ecbs-lane-backs-may\/","title":{"rendered":"ECB&#8217;s Lane backs May rate hike with size depending on data"},"content":{"rendered":"<p>FRANKFURT (Reuters) -The European Central Bank&#8217;s (ECB) chief economist on Tuesday backed a further interest rate increase at the ECB&#8217;s next meeting but said its size would depend on incoming data, especially a survey of euro zone banks.<\/p>\n<p>The ECB is expected to raise rates for a seventh straight meeting on May 4 in a bid to bring down stubbornly high inflation in the euro zone, with policymakers converging on a 25-basis-point hike, sources with direct knowledge of the discussion have told Reuters.<\/p>\n<p>Philip Lane, who is in charge of making policy proposals at the ECB, said a rate hike was &#8220;the baseline&#8221; after tensions in the banking sector receded, supply bottlenecks eased and gas prices fell.<\/p>\n<p>&#8220;As of now, two weeks away, I think the baseline is that we should increase interest rates in May but what we do in terms of scale, I&#8217;m not going to set a default number,&#8221; Lane said on Bloomberg TV.<\/p>\n<p>He said the size of the hike would depend on data including a preliminary estimate of the inflation rate in April, which will come out a day before the meeting, and GDP data for the first quarter of the year scheduled for the Friday before.<\/p>\n<p>But Lane singled out the ECB&#8217;s own Bank Lending Survey (BLS), in which banks are asked about the supply and demand of credit, as &#8220;the most important&#8221;.<\/p>\n<p>&#8220;That&#8217;s the most important survey for us in understanding whether we are indeed seeing further tightening of credit conditions,&#8221; Lane added.<\/p>\n<p>The next BLS is scheduled to be published on May 2, along with Eurostat&#8217;s flash inflation estimate for April.<\/p>\n<p> (Reporting by Francesco CanepaEditing by Mark Potter)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/ecbs-lane-backs-may\/european-central-bank-ecb-headquarters-in-frankfurt\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportEconomy\/tagreuters.com2023binary_LYNXMPEJ3H0NR-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3H0NR-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>FRANKFURT (Reuters) -The European Central Bank&#8217;s (ECB) chief economist on Tuesday backed a further interest rate increase at the ECB&#8217;s next meeting but said its size would depend on incoming data, especially a survey of euro zone banks. The ECB is expected to raise rates for a seventh straight meeting on May 4 in a [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":14813,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1216],"tags":[1223],"class_list":["post-14812","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-economy","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportEconomy\/tagreuters.com2023binary_LYNXMPEJ3H0NR-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/14812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=14812"}],"version-history":[{"count":2,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/14812\/revisions"}],"predecessor-version":[{"id":14833,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/14812\/revisions\/14833"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/14813"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=14812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=14812"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=14812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}