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ECB chief economist points to interest rate hike after tensions ease

European Central Bank (ECB) Chief Economist Philip Lane hinted this Wednesday that they will raise interest rates even further once financial market tensions subside.

Lane said at a conference with ECB observers in Frankfurt that they would continue to raise the price of money if their inflation forecasts proved correct.

New macroeconomic forecasts from ECB staff ended in early March, before the recent upsurge in financial market tensions.

This tension adds uncertainty to underlying estimates of inflation and growth.

Prior to tensions, the ECB had already revised global inflation downward due to falling energy prices, but excluding energy and food inflation continued to rise in February, and ECB experts expect it to average 4.6% in 2023, which higher than expected in December.

Author: Portuguese
Source: CM Jornal

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