European Central Bank chief economist Philip Lane stated on Monday that if there is a big movement in the euro currency, it would be relevant for the ECB's policy. He added that a really big move would matter for the ECB's CPI forecast but recent moves are not big movements.
Lane also noted that he does not think policy divergence with the Federal Reserve is any more of an issue than it was before.
In addition, the ECB's chief economist said that the peak effect of rates on inflation hasn't occurred yet. The official, however, added that the policymakers should not be too sensitive to monthly inflation data. In his view, they will see bumps in inflation, but they can deal with that.
Lane noted that the policymakers will have a lot of survey data at the next ECB meeting in July. He added that if they get welcome surprises on inflation or the economy weakens by more than expected, then they can cut rates more quickly.