The European Central Bank (ECB) is prepared to “do everything necessary” to meet the inflation target. If necessary, deposit rates and marginal lending rates can be further reduced, said central bank chief economist Philip Lane. He thereby responds to criticism from, among others, the Netherlands and Germany about the recently announced stimulus package.

According to Lane, “an extensive package of measures was the most effective way to raise inflation”. Critics of that policy, including President Klaas Knot of De Nederlandsche Bank (DNB) and Jens Weidmann of the German Bundesbank, believe that the measures will not promote economic growth, but will punish savers. In addition, they say that there may be bubbles in the housing market and the stock and bond markets.

According to Lane, it is new that this criticism is so openly expressed. According to the economist, however, that indicates that there are several points of view.

“That’s healthy.” Lane adds that the ECB is experiencing a “longer delay in the euro zone” than previously anticipated. “An adjustment of monetary policy was a logical response.”