The European Central Bank’s chief economist has said it should increase borrowing costs at a “steady pace”, casting doubt over whether he will support calls to raise interest rates by a record 0.75 percentage points next week.
Philip Lane told an event in Barcelona it would be better to “chop up” the expected path of rate rises over the coming months into “smaller increments” as this would give it time to “learn more” about how the economy is progressing.
His comments on Monday represent a mild pushback against more hawkish comments by other members of the ECB governing council, some of whom have anonymously called for it to consider a three-quarter percentage point rate rise for the first time in its history at next week’s meeting.