The European Central Bank must raise interest rates to a level that starts to restrict growth and their peak will depend on how the economy responds to the most rapid policy tightening cycle on record, ECB chief economist Philip Lane told the Financial Times. The ECB has raised rates by a combined 2.5 percentage points since July in an attempt to arrest a historic surge in inflation, but policymakers have already said that more will be needed get price growth, now just below 10 per cent, back to the ECB’s 2 per cent target by around 2025. “We need to raise rates more,” the FT quoted Mr Lane said on Tuesday. ... (full story)