MNI BRIEF: No Near-Term Interest Rate Debate - ECB's Lane

The European Central Bank's baseline scenario sees inflation "more or less at target "for several years with growth close to potential meaning "there is no near-term interest rate debate,” Chief Economist Philip Lane said in an interview published on Friday.

"The current level of the interest rate delivers the baseline for the next several years," Lane told Italian daily La Stampa. (See MNI SOURCES: ECB Seen On Hold For Extended Period )

"Under these circumstances, no one expects very large movements in interest rates. The pros and cons of the current 2% rate versus slightly lower or slightly higher is a more ‘normal’ monetary policy debate. In our baseline we foresee, indeed, a remarkably stable situation. But we live in a world characterised by a high level of uncertainty," Lane said.

However, he underlined that if there are developments in either direction, "[the ECB] will react".