ECB hikes key interest rate to record high even as recession threat grows

The European Central Bank hiked its key interest rate to a record high on Thursday, pressing its fight against stubbornly high inflation that has been plaguing consumers – even as worries grow that higher borrowing costs could help push the economy into recession.

The increase of a quarter-percentage point comes as central banks around the world, including the Federal Reserve of the United States, try to judge how much anti-inflation medicine is too much – and what’s the right point to halt their swift series of rate hikes before the economy tips into a downturn and people lose their jobs.

https://jamaica-gleaner.com/article/business/20230915/ecb-hikes-key-interest-rate-record-high-even-recession-threat-grows