Europe’s central bank hikes key interest rate to record high even as recession threat grows

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The European Central Bank has hiked its key interest rate to a record high. It’s pressing forward in its fight against stubbornly high inflation that’s been plaguing consumers, even as worries grow that higher borrowing costs could help push the economy into recession. The increase Thursday of a quarter-percentage point comes as central banks worldwide try to judge how much anti-inflation medicine is too much. They’re weighing what’s the right point to halt their swift series of rate hikes before the economy tips into a downturn. The ECB signaled that its 10th straight hike could be its last, shifting its emphasis from raising rates to keeping them high enough for long enough to beat down inflation.