Market news: Ukrainian President Zelensky and Spanish Prime Minister Sanchez signed a bilateral security agreement. As part of the agreement, Spain will provide Ukraine with weapons worth 1 billion euros.

ECB Chief Economist Lane: If inflation is more persistent than expected, then easing the stance too quickly would be inconsistent with a sustained return to the inflation target.

ECB Chief Economist Lane: Keeping interest rates too tight for too long could lead to inflation falling below target in the medium term. This will require corrective measures and may even require falling below neutral levels.

On the afternoon of May 27th local time, a knife attack occurred near the Old City of Jerusalem, and an Israeli policeman was stabbed in the attack.

ECB chief economist Lane: Even if inflation does not fall steadily in the rest of 2024, a further decline in inflation can be expected in 2025.

ECB Chief Economist Lane: It is clear that the appropriate degree of contractionary adjustments should take into account the impact of expected declines in inflation.

ECB Chief Economist Lane: The ECB wage indicator shows that overall wage pressures have eased since 2023.

ECB chief economist Lane: Relatively speaking, most of the impact of tightening policies on inflation is delayed, and it is expected that there will still be a large amount of transmission effect in the future.

ECB Chief Economist Lane: The breadth of domestic inflation dynamics is narrowing.

ECB chief economist Lane: If the inflation outlook remains unchanged, a rate cut in June would be appropriate.

ECB chief economist Lane: It is expected that the downward trend in inflation will also be consistent with the economic recovery.

ECB Chief Economist Lane: The anti-inflation target of 2% is expected to be reached in 2025.

ECB board member Francois Villeroy: For me, services inflation is more important than wages or profits.

ECB Chief Economist Lane: Inflation is expected to fall further in 2025.

ECB board member Villeroy de Villeroy: After the first rate cut, our monetary policy will remain tight.

ECB board member Francois Villeroy: For me, services inflation is more important than wages or profits.

ECB Chief Economist Lane: The breadth of domestic inflation dynamics is narrowing.

ECB Chief Economist Lane: The ECB has not pre-committed to a specific interest rate path.

ECB board member Villeroy de Villeroy: The current market view on terminal rates is not unreasonable.

ECB board member Villeroy de Villeroy: There is no doubt that the euro area has avoided a wage-price spiral.