Central Banks
ECB Hike Crosses Rubicon of Pain With Lagarde Warning of Hard Times
- Rate increase ratchets up pressure on feeble economy
- Officials acted to quell inflation still seen as too high
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The prospect that euro-zone interest-rate hikes may be over will do little to soften the impact as the European Central Bank tightens the screws on a faltering economy.
Thursday’s move to raise borrowing costs for a 10th consecutive time marks the entry into new territory for policymakers led by President Christine Lagarde as their visible hesitation points to awareness of how they’re dialing up the pain to pummel inflation.