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Recession on the cards, but ECB goes big regardless

The ECB delivered a chunky 75bp rate hike this week and signalled more large rate rises are to come even as it acknowledged that the euro-zone economy was likely to fall into recession. That’s consistent with ECB officials’ emphasis on fighting inflation over propping up growth. But there is little that the ECB can do about energy prices and discussions underway in Brussels about capping electricity prices will be closely watched over the coming days.

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