The European Central Bank may need to raise interest rates in December, its chief economist Philip Lane said on Tuesday, backing what would be the bank's third rate hike this year as inflation stays well above target.

Speaking to Bloomberg Television, Lane said a further increase would be the right move if the economic picture is unchanged when policymakers meet next month. Reuters reported his words: "If the information set we have in December is exactly the same as the information set today, then I think it would be prudent indeed to hike." He added: "There will be more to come in terms of peak inflation."

Inflation seen above 4% by year-end

Lane expects inflation to end the year a little bit above 4%, with core and food inflation likely to pick up. That is double the ECB's 2% target, and it explains why a growing list of policymakers has been making the case for another rise before the year is out.

The ECB's governing council next meets on 16-17 December, and Lane's remarks leave the door firmly open. He stressed that the decision will depend on the data available at the time, but his message was clear: on the information available today, a hike is the prudent course.

Central banks move together

Lane is not alone. The euro rose against the pound on Tuesday as falling oil prices helped the single currency outperform, while traders weighed a cluster of hawkish signals from the world's major central banks. Bank of England deputy governor Clare Lombardelli also kept a December rise in play, saying she would not rule one out, after the Bank raised its rate to 4% last week.

Across the Atlantic, Federal Reserve governor Christopher Waller said a half-point US rate hike in December should be considered if October core inflation comes in around 0.3% or higher, when the figures are published later on Tuesday. With the Fed, the ECB, the Bank of England and the Bank of Japan all meeting within ten days of each other in December, Lane's intervention sets up a closely watched end to the year for borrowers, savers and markets across Europe.