MADRID (Reuters) – The euro zone economy is likely to experience an economic slowdown, ECB chief economist Philip Lane said on Tuesday, but added that he would not rule out a mild, temporary slowdown and technical decline.
Lane told Spanish television TVE that the ECB should gradually raise interest rates. The agency raised interest rates by 50 basis points to zero in July.
While a similar move is expected in September, until recently many policymakers made the case for a larger rate hike due to a worsening inflation outlook.
