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The European Central Bank could hamper the transition to a greener economic model by increasing interest rates, say authors in a note published by the London School of Economics (LSE) on August 15.

The ECB increased rates to 0% on July 21. It was the first rate hike since 2011 and the ECB aims to bring inflation down to its 2% target. Headline inflation stood at 8.9% in July.

However, the note argues tighter financing conditions cannot address the factors boosting inflation. Higher rates are

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