ECB still seen playing catch-up as rate-hike path steepens

Faster rate increases may offer some support to the euro, which has plunged as the US central bank ramped up borrowing costs. Picture: Alex Kraus/Bloomberg

The European Central Bank remains behind the curve on tackling record euro-zone inflation and will have to act more forcefully than previously envisaged to wrest control of prices, according to a survey of economists.

Despite a surprisingly big increase in interest rates in July, more than two-thirds of respondents say officials have acted too slowly in battling inflation that’s just hit 9.1%. They now predict a higher end-point for the cycle of hikes, reached more quickly and including a 75 basis-point step on Sept. 8.