Don’t Tie ECB Hands to Big Hikes That Risk Recession, Visco Says

European Central Bank Governing Council member Ignazio Visco warned against his colleagues’ commitments to large interest-rate hikes, saying that acting too aggressively will heighten the danger of a recession.

“Rising inflation is now being accompanied by a sudden deterioration in the economic growth outlook,” he said. “In this context, excessively rapid and pronounced rate hikes would end up increasing the risk of a recession.”