Economics
ECB’s Wunsch Says Government Aid May Spell More Rate Hikes
- Outlays to offset inflation strain budgets, risk fragmentation
- ‘Backstop instrument’ all that’s needed to stem market panic
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The European Central Bank may need to raise interest rates by more than it wants if record inflation prompts governments to spend ever-increasing amounts on shielding households, according to Governing Council member Pierre Wunsch.