European Central Bank hikes rates again to battle inflation after US Fed hits pause

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The European Central Bank has pressed ahead with another interest rate hike. The quarter-percentage point increase Thursday aims to crush inflation that’s driving up the cost of groceries, utility bills and summer vacations. It comes a day after the U.S. Federal Reserve took a break from its own string of increases. In Europe, it was the eighth straight rise since July 2022 as the bank seeks to return inflation to its target of 2% from 6.1%. Many analysts think one more quarter-point hike is in the cards for the next meeting on July 27. ECB President Christine Lagarde’s remarks at a news conference will be scrutinized for clues about when rate increases might finally top out.