ECB may endure moderate recession to halt prices

European Central Bank Governing Council member Robert Holzmann said that a moderate recession may have to be accepted if inflation expectations rise

ECB President Christine Lagarde has vowed to raise interest rates for as long as it takes to return inflation to the 2% target.

The European Central Bank may have to accept a moderate recession to stem price pressures if it sees signals that inflation expectations are rising, Governing Council member Robert Holzmann said.

“We hope that won’t become necessary,” Holzmann told the Austrian public broadcaster ORF late Sunday.