The European Central Bank chugged ahead with another outsized interest rate hike Thursday and vowed more ahead, underlining its drive to subdue inflation even as the European economy slows.
| AP Business Writer
Central bank action can hold back economic growth if they go too far. With the ECB moving quickly, Lagarde acknowledged that “economic activity has slowed markedly” since the middle of last year and it’s expected to stay weak as demand slows around the world and Russia’s war in Ukraine raises uncertainty.
Raising rates makes it more expensive for consumers to borrow for purchases like homes and cars and for companies to fund expansions. That is designed to cool demand for goods that push up consumer prices, which increased 8.5% in the eurozone last month from a year earlier. High energy prices tied to Russia’s war in Ukraine have driven up utility bills for households and businesses, which have passed on those extra costs to shoppers and diners. That’s been the major driver of European inflation, which is well above the ECB’s target of 2% considered best for the economy.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
European markets head for positive open with central bank decisions aheadEuropean stocks are heading for a positive open as investors digest the latest move by the U.S. Fed and look ahead to decisions by central banks in Europe.
Read more »
Sticky inflation means the European Central Bank could be far from a policy pivotThe European Central Bank is set to hike interest rates again on Thursday, with policymakers in Frankfurt shifting their focus to core inflation and trying to predict when sky-high consumer prices might fall.
Read more »
ECB Preview (European Central Bank)What to expect From ECB? Learn about European Central Bank's decisions and its impact on currencies: Advice to help you get the most profit out of monetary policy decisions.
Read more »
When is the European Central Bank (ECB) rate decision and how could it affect EUR/USD?When is the European Central Bank (ECB) rate decision and how could it affect EUR/USD? – by hareshmenghani ECB InterestRate Finland EURUSD Currencies
Read more »
European Central Bank raises rates by 50 basis points, pledges further hike in MarchThe European Central Bank on Thursday confirmed expectations of a 50 basis point interest rate increase, taking its key rate to 2.5%.
Read more »
Fed interest rate decision today: Central bank hikes by 0.25 percentage point to tame inflationThe Fed raised its key interest rate by a smaller amount as it slowed its campaign for a second straight meeting. Chair Jerome Powell speaks next.
Read more »