ECB to inflict pain as it hikes rates into next year, economist says

The European Central Bank could raise interest rates into next year, chief economist Philip Lane says. The ECB delivered two oversized rate hikes in July and September, and promised even more action as long term price growth expectations are now moving above its 2% target. Lane said rates could continue to go up at each remaining meeting this year and may rise early next year. He added that the euro zone economy is likely to flatline over winter months and a recession could not be ruled out given high energy prices and a shortage of natural gas.

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