An ECB governing council member said the bank may need to maintain a hawkish
stance and guard against inflation shocks. They warned core inflation could
rebound via second-round pass-through from goods and services prices, pushing
inflation higher and requiring a degree of hawkish policy. The ECB has already
raised rates twice; markets widely expect another hike in December. Euro-area
inflation rose to 4% in October, a three-year high.
