ECB's Philip Lane warns strong inflationary pressures warrant holding back economic growth

Mr Lane said the ECB was not committing to any further policy easing after last Thursday's rate cut, and any follow-up decisions would be taken meeting by meeting

ECB chief economist Philip Lane said wage growth — the key driver of inflation — was 'still elevated', as firms adjust wages in response to past inflation, but he was expecting a slowdown next year.

Inflationary pressures are still strong enough to warrant the European Central Bank (ECB) keeping rates higher and holding back economic growth, its chief economist Philip Lane has said.

Last week, the European Central Bank announced a 0.25% reduction to its main lending rate following an aggressive campaign of interest rate hikes used to drive down high inflation.