More from ECB's Holzmann - may have to accept a moderate recession to fight inflation

Holzmann is head of the Austrian National Bank and thus on the European Central Bank policy-setting board.

Earlier post here:

• ECB Holzmann says the Bank will take the economy into consideration when hiking rates

The gist of this post is that the European Central Bank will set the size of a next tightening step in September (+50, or small or or larger) depending on developments in the economic outlook.

Bloomberg (gated) have added a little more:

• The European Central Bank may have to accept a moderate recession to stem price pressures if it sees signals that inflation expectations are rising
• “We hope that won’t become necessary”

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The energy crisis in Europe looks to me like it has baked in an EZ recession, whether the ECB wants to 'accept' one or not.