ECB's Lane says transmission of monetary policy to the real economy is firmly taking hold

[forex4you]

ECB's Lane says transmission of monetary policy to the real economy is firmly taking hold

European Central Bank chief economist Lane:

• 
  Sees staggered reset of prices and wages across the economy, a
  process which is ongoing.
• Dynamics of wages
  and profits in the coming quarters still an open question
• The transmission of
  our monetary policy to broader financing conditions and the real
  economy is firmly taking hold

If Lane is correct about the transmission process underway it argues for less pressure for further rate hikes from the Bank, should inflation and wages behave as desired (ie not spiral higher!)

Full text of his speech is here:

• Disinflation And Monetary Policy In The Euro Area

                This article was written by Eamonn Sheridan at www.forexlive.com.

Source: ECB's Lane says transmission of monetary policy to the real economy is firmly taking hold

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