ECB Policymaker Makhlouf Warns Against Excessive Rate Hikes Amid Inflation Risks
ECB Interest Rate Policy and Inflation Concerns
Risks of Prolonged Inflation Due to Middle East Conflict
DUBLIN, Sept 11 (Reuters) - A drawn-out conflict in the Middle East risks keeping inflation elevated for a long period but the European Central Bank could also damage economic growth if it raises interest rates "a great deal more", ECB policymaker Gabriel Makhlouf said on Friday.
Recent ECB Rate Hikes and Future Policy Outlook
Current Rate Hike Actions
The ECB raised borrowing costs on Thursday for the second time this year and sources told Reuters policymakers expect further policy tightening in the months ahead, with a move possible as early as October.
Makhlouf's Perspective on Economic Uncertainty
"There remains significant uncertainty to the outlook," Makhlouf wrote on a blog on the Irish central bank's website.
Energy Prices as a Key Driver of Inflation
"The near-term driver of elevated inflation remains energy. A drawn-out conflict in the Middle East risks keeping inflation elevated for a long period. But the other side of uncertainty is that raising rates a great deal more from here could carry real costs in terms of growth."
(Reporting by Padraic Halpin, editing by Sam Tabahriti)