Central Banks
ECB’s Lane Says More Hikes Needed If Bank Woes Are Contained
- Rates must rise if financial tensions stay ‘fairly limited’
- Chief economist spoke in interview with Zeit newspaper
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The European Central Bank will need to increase interest rates further if recent tensions in the financial system stay contained, Chief Economist Philip Lane told Zeit in an interview.
Under the ECB’s baseline scenario, “we expect these tensions will settle down” and then “more hikes will be needed,” Lane said.