There is still some way to go before euro zone inflation is sustainably back at 2% but ECB policy should not remain restrictive for too long, otherwise price growth could fall below target, Philip Lane,

"Monetary policy should not remain restrictive for too long. Otherwise, the economy will not grow sufficiently and inflation will, I believe, fall below the target," he said, adding that the ECB would not commit to its exact easing rhythm in advance.

The European Central Bank should be able to reduce interest rates to a level where they no longer restrict the economy in 2025, according to Chief Economist Philip Lane.

Philip Lane, spoke out in favour of further interest rate cuts to support the economy in an interview published on Monday. "We are not committing ourselves in advance to an exact pace of reduction, but we will have to cut our interest rates gradually,