ECB’s Lane Broadens Data Lens to Non-Monetary Policies for Inflation

European Central Bank Chief Economist Philip Lane said the institution’s data-dependent approach now explicitly incorporates information on policy measures outside the monetary sphere. Speaking on Tuesday, Lane noted that changes in both international and domestic policy regimes—such as fiscal initiatives, trade rules or regulatory adjustments—can materially affect the inflation outlook. Lane’s comments suggest the Governing Council will weigh a broader set of inputs when judging whether price pressures are receding sufficiently to justify additional interest-rate moves. The remarks come as officials debate how quickly to unwind last year’s tightening in the face of slowing growth and still-elevated consumer-price gains.