European Central Bank set to outdo Fed with half-point hike

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The European Central Bank is set to go big again, with another half-point interest rate increase. The bank is meeting Thursday and has been aggressively raising rates to fight inflation that’s way too high at 8.5% annually. The higher benchmarks raise the costs of credit across the economy, which should help bring down demand for goods that is pushing up prices. The ECB got a later start in raising rates than the U.S. Federal Reserve and as a result is now moving faster. The Fed hiked interest rates by a quarter-point Wednesday. Like the ECB, the Bank of England is expected to go bigger with a half-point hike Thursday.