European Central Bank expected to slow pace of rate hikes

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The European Central Bank could slow its record pace of interest rate increases. But not by much. Analysts say the bank might decide at Thursday’s meeting on an increase of half a percentage point instead of three-quarters of a point after inflation fell unexpectedly in November. That’s still a big hike and would underline that the bank is focused on cracking down on inflation, which is at a still-painful 10%. That would follow the moves by the U.S. Federal Reserve on Wednesday and Bank of England also Thursday. ECB President Christine Lagarde is expected to make clear that now is not the time to back off on combating inflation.