European Central Bank board member Philip Lane recently clarified the institution's policy framework: when inflation strays significantly and persistently from target levels, monetary authorities will act—no matter what's driving the deviation.

This principle-based approach suggests the ECB won't sit idle if price stability gets compromised, whether the culprit is supply shocks, demand surges, or external pressures. For crypto markets, central bank policy shifts often ripple through risk asset appetite and liquidity conditions. Lane's hawkish undertone signals potential rate adjustments could still be on the table if economic data warrants intervention.