ECB Chief Economist Philip Lane Sees Neutral Rate As High As 2.5%

European Central Bank Chief Economist Philip Lane said the neutral interest rate could be as high as 2.5%, suggesting the latest rate hike may not yet be restraining the economy, according to 36Kr. Speaking Thursday at an event hosted by Deutsche Bank, Lane said last week’s tightening decision may not have started to curb economic growth. He added that the ECB began last week’s move from a clearly neutral position, and that based on a range of neutral-rate models, the upper end of the neutral-rate range has risen to 2.5% from 2.25%.