Governments’ efforts to ease the energy crisis risk forcing the European Central Bank to raise interest rates more aggressively as it battles record inflation, according to Governing Council member Pierre Wunsch. It’s already “reasonable” for the ECB to lift borrowing costs to 3% from 0.75% now to tame prices, the Belgian central bank chief said in an interview in Washington. A “subsidy war” where states distribute aid to energy-intensive firms would add to the pressure, he said. “The biggest worry is having monetary policy trying to get inflation under control and fiscal policy doing ever more to support people,” ... (full story)