A growing number of European Central Bank policy makers are losing faith in the institution’s current inflation forecasting, emboldening their shift toward hiking interest rates later this year, according to officials with knowledge of the matter. While Chief Economist Philip Lane robustly defends the ECB’s projections and insists his staff’s modeling is reliable and state-of-the-art, several governors are cautioning against depending too much on them in a quickly changing, uncertain environment where the recent run of price increases has persistently confounded expectations. Such doubts on the forecasting process ... (full story)