Governor of Bank of Spain urges ECB to continue raising rates

The European Central Bank (ECB) will need to keep raising interest rates to fight inflation, even as the possibility of a recession in the euro area grows, Governor of the Bank of Spain Pablo Hernandez de Cos said, Report informs.

He noted that after a significant slowdown in economic growth in the third quarter, further weakening of the eurozone economy is expected before the end of this year, which will continue until the first half of 2023.

The ECB, as part of an official statement on monetary policy on October 27, abandoned the rhetoric about a likely rate hike in the future. Central bankers later decided to raise the deposit rate by 75 basis points to 1.5%, the highest since 2009.

Eurozone annual inflation accelerated to 10.7% in October and is expected to remain above the ECB's target of 2% through 2024.