MADRID—The eurozone’s economy is likely to experience an economic slowdown, European Central Bank’s chief economist Philip Lane said on Tuesday, adding however that he did not rule out a mild, temporary, and technical recession.
Lane told Spanish broadcaster TVE that the ECB should raise interest rates on a step-by-step basis. The institution raised rates by 50 basis points to zero in July.
While a similar move was expected in September until very recently, a host of policymakers have made the case for a larger hike due to the worsening inflation outlook.
