© Reuters. FILE PHOTO: European Central Bank Chief Economist Philip Lane speaks during a Reuters news event in New York, U.S., September 27, 2019. REUTERS / Gary He / File Photo / File Photo
MADRID (Reuters) – The euro zone economy is likely to suffer a recession, European Central Bank chief economist Philip Lane said on Tuesday, however, he added he did not rule it out. except for a mild, temporary technical recession.
Lane told Spanish broadcaster TVE that the ECB should raise rates on a step-by-step basis. The institution raised interest rates by 50 basis points to zero in July.
While a similar move had been expected in September until very recently, a wide range of policymakers made the case for a bigger upside due to the worsening inflation outlook.