The European Central Bank's chief economist, Philip Lane, has said he wants to see the eurozone take a step-by-step interest rate hike approach following July's increase.

Interest rates jumped 50 basis points during the summer, the first hike in 11 years, with more increases indicated in the coming months.

The next interest rate hike is expected to come on September 8th, with people speculating that a higher rise could be on the cards.

Earlier in the week, ECB policymaker Martins Kazaks said further hikes should be considered. "Frontloading rate hikes is a reasonable policy choice. We should be open to discussing both 50 and 75 basis points as possible moves."

But the ECB economist has called for a more measured approach while speaking to Spanish broadcaster TVE.

In Association with

Mr Lane refused to rule out a recession impacting Europe, telling the broadcaster a mild, temporary and technical recession could lie ahead.

Currently at 8.9%, inflation is more than four times the ECB's target of 2% and it is still likely to go higher before a slow retreat. Here in Ireland, inflation has hit 9.6% on the Eurozone measure.

Underlying inflation, which filters out volatile food and energy prices, is also high.