Philip Lane: Next ECB decisions on interest rates will be based on data (Video)

Philip Lane, the Chief Economist and member of the European Central Bank's (ECB) executive board has said the bank's next monetary policy decisions will be based on incoming data, adding that decisions on interest rates will depend on the inflation outlook, how quickly the interest rate increases are restricting the economy and the data that is being received every week.

in an interview with CNA, Lane also highlighted the ECB's focus on understanding every data point that comes in and assessing whether interest rate increases are reducing credit or leading to lower investment or consumption. He said if projections from the banking stress tests from March hold up, then a rate hike will be appropriate at the ECB's May meeting. However, if the incoming data creates more inflation concerns, that will move the ECB in one direction, while if the data creates fewer inflation concerns, that will move the ECB in another direction. Lane also said the ECB is raising interest rates now because inflation is high, adding that the move is the best route to making sure the economy is in good shape and the cost of living stabilizes.

The interview below: