Written by Paul Hannon
Philip Lane, the European Central Bank's chief economist, said on Wednesday that the eurozone economy is not weakening rapidly, but questions are being raised about whether the expected recovery is progressing.
The central bank said in September it expected growth to accelerate next year, but a series of recent surveys and economic indicators have shown signs of stagnation.
Speaking in Washington, D.C., Lane said that while these surveys were not entirely in line with the ECB's expectations, they did not suggest a significant deterioration in the outlook.
“There is no dramatic slowdown in the eurozone economy,” Lane said.
The ECB expects household consumption to rise as strong wage increases restore some of the purchasing power lost during the surge in inflation that began in 2021 and peaked in 2022.
However, concerns about growth prompted the ECB to lower its key interest rate in September, marking the first consecutive rate cut since 2011.
Several ECB policymakers said on Tuesday that the central bank could take even bigger steps if data suggested the economy was slowing further and inflation was falling faster than expected.
Lane said policymakers will continue to be “agile” in responding to economic data.
Email Paul Hannon at paul.hannon@wsj.com.
(Ended) Dow Jones News
10-23-24 1043ET
