Lane (ECB) does not rule out a recession in the euro zone


Lane (ECB) does not rule out a recession in the euro zone |  Photo credits: Central Bank of Ireland

Lane (ECB) does not rule out a recession in the euro zone | Photo credits: Central Bank of Ireland

MADRID, Aug 30 (Reuters) – The eurozone economy is slowing, European Central Bank (ECB) chief economist Philip Lane said on Tuesday, adding that he would not rule out a moderate and temporary technical recession.

Questioned by the Spanish television channel TVE, Philip Lane also explained that the ECB should raise its interest rates step by step.

The institution has already raised its three key rates by half a point in July in the face of accelerating inflation and, while the markets were expecting a move of the same magnitude next week, several of its officials have suggested in recent days that it could opt for a three-quarter point hike.

(Report Jesús Aguado and Emma Pinedo, French version Marc Angrand)





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