LONDON (Reuters) - The recent rise in European and global bond yields is a sign that the pessimism that built up about the world economy earlier in the year has started to reverse, the European Central Bank’s chief economist, Philip Lane, said on Monday.
“It (rise in yields) shows that there is a little bit less pessimism,” Lane told Reuters after a lecture on the bond yield curve at University College London.
During a question and answer session he was also asked what the ECB would do if it looked like inflation was starting to backslide again.
“The best guide might be what we did in September, which was a little bit of everything,” Lane said, adding the caveat that “all market instruments could be adjusted”.
Reporting by Marc Jones; Editing by Tommy Wilkes