Lane: ECB policies are in good shape in current scenario

MILAN: The European Central Bank’s chief economist Philip Lane (pic) said policies are “in good shape” for the baseline scenario of improving conditions over the next one or two years, but further rate cuts can’t be ruled out.

“Under the most likely scenario, we think the current policies are in good shape,” he said in an interview broadcast on Saturday on Italy’s Sky TG24. The scenarios where “more dramatic policies” are required such as “a severe negative shock, a big recession” are not the baseline case, he added.