Europe’s central banker: Not adding to pinch with rate hike

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The head of the European Central Bank is doubling down on the message that it’s no time to raise interest rates. Christine Lagarde says the bank won’t add to the squeeze on consumers who are facing rising prices driven by high energy costs. Higher inflation is making other central banks look at reining in support for the economic rebound from the coronavirus pandemic. Lagarde says higher inflation is caused by temporary factors such as costlier oil and gas and by supply shortages. She said the bank would “recalibrate” some stimulus efforts going into next year but it’s “highly unlikely” that rates would rise from current record lows.