European Central Bank slows rate hikes but vows more ahead

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The European Central Bank has slowed its record pace of interest rate increases. But not by much. The bank decided Thursday meeting to hike rates by half a percentage point instead of three-quarters of a point after inflation fell unexpectedly in November. That’s still a big hike and underlines that the bank is focused on cracking down on inflation, which is at a still-painful 10%. That follow the moves by the U.S. Federal Reserve on Wednesday and Bank of England also Thursday. ECB President Christine Lagarde has vowed that more hikes are ahead, saying, “We have more ground to cover, we have longer to go” to tamp down inflation.