ECB Lane Says Growth Drags May Limit Rate Hikes
ECB chief economist Philip Lane stated that rising energy costs and higher yields could weigh on economic growth. This dynamic might reduce the necessity for further aggressive policy tightening by the central bank.
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Surging energy costs and rising borrowing expenses will weigh on economic growth, potentially capping European Central Bank interest rate hikes, Chief Economist Philip Lane said. The ECB has raised rates twice this summer as inflation spiked near double its 2% target. Officials are now weighing how much tightening remains necessary as growth proves resilient.
