European Central Bank chief economist Philip Lane cautioned that inflation could remain above the bank’s 2% target for an extended period.

Lane’s warning reflects the ECB’s ongoing struggle to tame price growth in a post‑pandemic economy. The comment signals that monetary policy may stay tight longer than market forecasts had suggested.

For investors, a sustained inflationary environment could keep borrowing costs high, dampening corporate earnings and pressuring bond yields across the eurozone.

The ECB’s stance underscores the delicate balance between curbing inflation and supporting growth, a tension that will shape policy decisions and market sentiment for months to come.