ECB Battle Lines Form for March Decision as Future Hikes Debated
- Holzmann makes hawkish case in call for four half-point hikes
- Lane insists ECB officials shouldn’t raise rates on autopilot
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Battle lines are forming for the European Central Bank decision next week, with one official calling for a whole campaign of new tightening and some colleagues favoring caution.
Toward the dovish end of the spectrum, Chief Economist Philip Lane on Monday acknowledged the need for more increases after a half-point move penciled in for March 16, but warned against policy on “autopilot.” Portuguese central-bank chief Mario Centeno highlighted that inflation is even undershooting ECB forecasts.