Makhlouf Warns of Rate Hikes' Economic Risks Amid Elevated Inflation

European Central Bank policymaker Gabriel Makhlouf warned that further rate hikes could harm economic growth. In an article on the Irish central bank's website, Makhlouf stated that there is significant uncertainty surrounding inflation and interest rates.

The ECB raised borrowing costs for the second time this year on Thursday, with some sources suggesting that policymakers expect additional policy tightening in the coming months.

Makhlouf emphasized that a drawn-out conflict in the Middle East may keep inflation elevated for an extended period. He cautioned against significant rate hikes, saying they could damage economic growth.