The European Central Bank (ECB, the euro area’s monetary authority) faces a trade-off between containing inflation and protecting growth as a prolonged Middle East conflict threatens to keep energy prices elevated. ECB policymaker Gabriel Makhlouf said on Friday that raising interest rates a great deal more could carry real growth costs. The ECB raised borrowing costs Thursday for the second time this year, while sources told Reuters that policymakers expect additional tightening in the coming months, potentially as early as October.