European Central Bank Executive Board member Philip Lane said on Wednesday that if financial stress remained limited, more rate hikes would be necessary to bring down inflation in the Eurozone. In an interview with German weekly Die Zeit, Lane, who is the ECB’s chief economist, said that current wage developments in the currency union did not look excessive, tempering fears of a wage-price spiral. ‘Under our baseline scenario, in order to make sure inflation comes down to 2%, more hikes will be needed’, he said. ‘That is absolutely our diagnosis.’ ‘If the financial stress we see is non-zero, but turns out to be still ... (full story)