FRANKFURT (Reuters) – European Central Bank (ECB) chief economist Philip Lane revealed in a private meeting with German economists that the ECB expects to hit its 2% inflation goal by 2025, the Financial Times reported on Thursday.
The ECB had not made this long-term forecast public, meaning Lane was likely to face questions about his decision to reveal unpublished information to individuals outside the institution.
An ECB spokesman declined to comment.
Earlier this year, the ECB chief economist was forced to suspend one-on-one meetings with investors after policy decisions following public criticism. But he has still been meeting with groups of economists.
The ECB updated its forecasts last week as it reduced the pace of its emergency bond purchases. It now sees inflation at 2.2% this year, 1.7% the next and 1.5% in 2023.
The FT wrote that Lane told the German economists that the ECB’s “medium-term reference scenario” showed inflation rebounding to 2% soon after the end of its current forecast period.
The central bank has pledged not to raise rates until it sees inflation hitting 2% well before the end of its forecast horizon, which is typically between two and three years. Money markets have priced in a rate hike two years from now.
(Reporting By Francesco Canepa; Editing by Balazs Koranyi and Aurora Ellis)
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