ECB must keep raising rates to fight off inflation — Philip Lane

Governments will also have to take on a bigger role in fighting off inflation

ECB chief economist Philip Lane: 'We need to raise rates more.' Picture: Sam Boal/RollingNews.ie

The European Central Bank must raise interest rates to a level that starts to restrict growth and their peak will depend on how the economy responds to the most rapid policy tightening cycle on record, ECB chief economist Philip Lane said.

The ECB has raised rates by a combined 2.5 percentage points since July in an attempt to arrest a historic surge in inflation, but policymakers have already said more will be needed get price growth, now just below 10%, back to the ECB's 2% target by around 2025.