Euro-Area Inflation at 10.1% Slowed Less Than Thought Last Month

Reuters

ECB raises rates again, outlines balance sheet run off

The European Central Bank raised interest rates by half a percentage point on Thursday, its fourth successive hike, and outlined plans to shrink its bloated balance sheet from March, hoping that higher borrowing costs will finally arrest runaway inflation. The ECB has raised interest rates by a combined 2.5% percentage points since July, its fastest pace of monetary tightening on record, to counter inflation driven above 10% this autumn by soaring food, energy and now services prices. “Based on the substantial upward revision to the inflation outlook, expects to raise them further,” the ECB said in a statement.