8.3 C
New York
Thursday, March 23, 2023

Euro zone ministers approve Lane as next ECB chief economist

Euro zone ministers approve Lane as next ECB chief economist© Reuters. FILE PHOTO: Governor of the Central Bank of Ireland Philip Lane arrives at Government buildings in Dublin

BRUSSELS (Reuters) – Euro zone finance ministers nominated Ireland’s central bank governor Philip Lane on Monday to be the next chief economist of the European Central Bank after the term of Belgium’s Peter Praet ends on May 31, the ministers said in a statement.

“The Eurogroup today gave its support to the candidacy of Philip Lane to become a new member of the European Central Bank’s executive board,” the statement said.

Lane, 49, has led Ireland’s central bank since 2015, overseeing solid growth in the Irish economy after an EU bailout in 2011-2014 that helped the country overcome its worst financial crisis since World War Two.

He was the only candidate for the job and will be formally confirmed by EU leaders at their summit on March 22-23.

“The new member of the executive board will replace Peter Praet and will serve a non-renewable 8-year term, as of 1 June 2019,” the statement said.

Considered a dove closely aligned with ECB President Mario Draghi, Lane will be responsible for preparing monetary policy decisions, one of the most vital positions at the bank.

His appointment comes at a crucial moment for the ECB, when the bank’s plans for its first post-crisis rate hike are complicated by an unexpectedly sharp slowdown in the euro zone economy and persistently weak inflation.

Lane will join the ECB as the bank is also facing a broad reshuffle of its key positions, with Draghi’s mandate ending in October, and Frenchman Benoit Coeure, who also sits on the six-person ECB board, due to leave in December.

Nearly a third of the 25-member Governing Council, which includes ECB board members and governors of national central banks, is also turned over this year, an unusually high ratio.

Besides the three board members, the central bank governors of Belgium, Austria, Estonia, Slovakia and Cyprus are all expected to be replaced this year.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles