Euro zone households could increase consumption, ECB chief economist says

(Reuters) – Euro zone households are likely to reduce their savings this year and consume more of their disposable income, though this shift is still likely to be modest, European Central Bank chief economist Philip Lane said on Wednesday.

Improved real incomes and lower bank deposit rates could prompt households to reduce their exceptionally high saving rate but uncertainty, including about geopolitics, could still keep consumers cautious, Lane told a Goldman Sachs event in Hong Kong.

“So, we do think this (high savings rate) is going to come down, but not massively,” Lane said.