ECB to revise inflation, growth forecasts, its chief economist says

May 26, 2026 5:22 AM EDT

FILE PHOTO: Dark clouds are seen over the building of the European Central Bank (ECB) in Frankfurt, Germany, June 6, 2024. REUTERS/Wolfgang Rattay/File Photo

TOKYO, May ‌26 (Reuters) - The ​European ​Central Bank will likely revise its inflation and growth forecasts ‌next month reflecting the darkening outlook ⁠from the Middle East conflict, its chief ‌economist Philip Lane ‌told Nikkei newspaper in an interview published on Tuesday.

"There are several factors ​related to the Iran war that show that the macroeconomic outlook ⁠has gotten worse," Lane said in an interview ​with the Japanese business daily.

He also said oil prices were expected ​to remain elevated for ‌longer compared with the ECB's assumptions in March. While ⁠increased U.S. natural gas supplies could help cushion the energy market, "on net, I ⁠still think that there has been upward pressure ​on inflation," he said.

"We are likely to make a further upward adjustment to the ‌inflation forecast in June," Lane said in the interview.

The ECB ‌revises its growth and inflation ⁠projections every three ‌months. The next ​revision comes on June 11.

(Reporting by Leika KiharaEditing by Ros ‌Russell)



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