European Central Bank Governing Council member Pablo Hernandez de Cos signaled he prefers a more gradual approach to raising interest rates to confront record euro-zone inflation. While saying that borrowing costs need to rise further with prices surging at almost five times the 2% target, the Spanish central bank chief warned that the 19-member euro area is facing a marked slowdown in activity. “Our actions affect inflation very gradually, reaching their maximum impact after about two years,” De Cos said Monday in a speech in Almeria, Spain. Even if the impact were more immediate, “it may not be desirable to force ... (full story)