FRANKFURT (Reuters) – The European Central Bank is raising interest rates to suppress economic growth and, with it, inflation, the ECB’s chief economist Philip Lane said on Wednesday.
“By bringing interest rates to a sufficiently restrictive level and fostering a period of below-trend growth through the dampening of demand, we will counteract above-target medium-term inflation pressures and also ensure that the prolonged phase of above-target inflation does not become embedded,” Lane said at an event in Ireland.
(Reporting By Padraic Halpin; Writing by Francesco Canepa in Frankfurt)
