The Fed has paused. How long will Europe’s central bank keep raising rates in a shaky economy?

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The U.S. Federal Reserve has hit “pause.” But the European Central Bank is still pushing “fast forward.” Another interest rate increase of a quarter-percentage point is expected when the ECB’s governing council meets Thursday. The ECB is still raising in part because it started after the Fed and hasn’t raised rates by as much. Analysts are going to be parsing remarks by bank President Christine Lagarde for clues about when the ECB’s rapid series of rate increases might finally top out. Rate hikes aim to tame inflation but can also slow the economy, and Europe’s already has contracted slightly in the last six months.