Central Banks

ECB’s Lane Urges ‘Steady Pace’ of Rate Hikes to Minimize Risks

  • Lane says bigger increases could generate adverse effects
  • Other ECB officials have floated a 75 basis-point step

Philip Lane

Photographer: Alex Kraus/Bloomberg
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European Central Bank Chief Economist Philip Lane urged a “steady pace” of interest-rate increases in fighting record inflation to minimize negative consequences -- seeming to push back after some of his colleagues floated a 75 basis-point hike at next week’s meeting.

Lane, one of the 25-strong Governing Council’s most-dovish members, said the same overall boost to borrowing costs is less likely to generate adverse effects in the form of a “multi-step calibrated series rather than a smaller number of larger rate increases.”