LISBON (Reuters) – Inflation will be higher and less transitory than originally thought and a cycle of interest rate hikes will continue to try to tame it, European Central Bank governing council member Mario Centeno said in Portugal on Tuesday, blaming a succession of overlapping shocks that have changed the economic context significantly.
The ECB has lifted rates by a combined 125 basis points over its last two meetings to combat inflation that is nearing 10%, and markets have priced in further increases at each of the ECB’s meetings through next spring.
(Reporting by Sergio Goncalvez, writing by Aislinn Laing)
