ECB's Lane sees good case for 'soft landing' of economy

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ECB's Lane sees good case for 'soft landing' of economy
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European Central Bank chief economist Philip Lane said today there was still a 'good case' for the euro zone economy to avoid a recession despite a tightening credit market.

European Central Bank chief economist Philip Lane said today there was still a"good case" for the euro zone economy to avoid a recession despite a tightening credit market.

Professor Lane said he remained confident the euro zone's economy could avoid a credit crunch as companies were not bracing for a recession. Inflation in the euro zone is falling fast and the economy has begun contracting, data showed this week. Commenting on market expectations for the ECB to cut that rate next year, Lane said 4% was"not a forever rate" and it was"not normal".

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