He added: "But having been late to the interest rate hiking party, the ECB is now making up for lost time. While Eurozone inflation has largely been driven by supply side challenges rather than excessive demand, the ECB has acted firmly as it looks to avoid expectations of higher inflation from becoming entrenched.
"Another crucial reason is to try and halt the Euro’s slide against the US dollar given that this has put further upward pressure on inflation. Fundamentally, it appears that the ECB is taking a similar stance to the Bank of England and the Federal Reserve: tackling inflation at the expense of economic growth."
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carmen.reichman@ft.com
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