European Central Bank Chief Economist Philip Lane has signaled that another interest rate hike in December could be prudent, provided economic data does not shift significantly in the coming weeks. Speaking to Bloomberg Television, Lane emphasized that while oil prices may fluctuate, inflation is expected to remain slightly above 4% by the end of the year.
Lane highlighted that food and core prices are likely to accelerate, particularly in the first quarter of next year. His remarks suggest that the ECB is closely monitoring inflation trends and remains prepared to take action if necessary to maintain price stability.
The ECB's next meeting will be crucial in determining whether borrowing costs will be raised further. Lane's comments underscore the bank's cautious approach, balancing the need to control inflation with the potential volatility in key economic indicators like oil prices.