European Central Bank hikes interest rates for ninth time to combat inflation

The European Central Bank raised interest rates for the ninth straight time in its yearlong campaign to stamp out painfully high inflation, even as worries about recession fuel speculation that Thursday's hike could be its last.

ECB President Christine Lagarde had all but promised the quarter-percentage point increase. That puts the focus at her post-meeting news conference on whether the bank will raise rates again at its September meeting or hold off after a record series of rate hikes.

Central banks around the world have been raising borrowing costs to combat inflation unleashed by higher energy prices after Russia invaded Ukraine and supply chain backups as the global economy recovered from the coronavirus pandemic.

Now, the question is whether the rapid rate hikes are reaching their end.

The ECB move followed a decision by the US Federal Reserve on Wednesday to raise its key rate for the 11th time in 17 months.