Europe’s central bank faces challenges from record inflation

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — European Central Bank President Christine Lagarde has the job of explaining why the bank isn’t raising interest rates despite record high inflation as it left its key economic stimulus programs in place. The bank for the 19 countries that use the euro is moving more slowly than the U.S. Federal Reserve and the Bank of England in withdrawing support as economies rebound from the worst of the coronavirus pandemic. The Fed has signaled it could start raising interest rates in March, while the Bank of England hiked rates on Thursday and in December. Lagarde has said a hike from her bank is unlikely this year.