Makhlouf Warns of Growth Risks from Further Rate Hikes

European Central Bank (ECB) policymaker Gabriel Makhlouf has warned that further interest rate hikes could damage economic growth. In a blog post on the Irish central bank's website, Makhlouf noted that while a drawn-out conflict in the Middle East risks keeping inflation elevated for a long period, raising rates 'a great deal more' from here could have real costs in terms of growth.

The ECB raised borrowing costs on Thursday for the second time this year. Sources told Reuters that policymakers expect further policy tightening in the months ahead, with a move possible as early as October.