EconomyEuro area

ECB's Lane says France's bond troubles must be fixed in Paris

ECB chief economist Philip Lane said the bank should not use its tools to ease France's budget troubles, and that the fix lies in Paris. He also said a December rate hike would be prudent if the data do not shift.

Illustration: The columned stone front of a central bank building with wide steps, carved in black lines with one emerald accent, seen from far away.
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Philip Lane, the European Central Bank's chief economist, said the bank should not change how it runs down its bond holdings. Running down means the bonds it holds are no longer replaced when they mature.

Lane also said the ECB should not use its crisis tool to help France with its budget problems. In his view, the fix for France's bond trouble lies in Paris.

Another ECB official, Kazaks, said judgments about rate hikes were becoming more nuanced. Lane said a rate hike in December would be prudent if the data did not shift.

GuideEconomic calendar: the data and decisions coming up

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