LISBON (Reuters) – European Central Bank Governing Council member Mario Centeno said on Tuesday that inflation will be higher and less transitional than originally thought and that the interest rate hike cycle will continue to try to tame it, blaming a series of overlapping shocks. That changed the economic context dramatically.
The European Central Bank raised interest rates by a combined 125 basis points during its last two meetings to combat inflation nearing 10%, and markets have been pricing in additional increases at each ECB meeting until next spring.
