Europe likely to see another jumbo interest rate increase

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The European Central Bank is getting ready to go big again. An interest rate increase of three-quarters of a percentage point is regarded as a done deal for Thursday’s meeting in Frankfurt, Germany. It’s a sign of determination to contain inflation that’s running out of control at 9.9%, well above the bank’s target of 2%. The ECB joins the U.S. Federal Reserve in making drastic hikes even as fears grow that the moves could slow the economy. Europe has enough trouble since the war in Ukraine has raised energy prices this year. Still, analysts say this isn’t the end of the increases and are waiting to hear bank President Christine Lagarde for clues on how high the ECB will go.