European Central Bank hikes rates, vows ‘we are not done’

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The European Central Bank has hiked interest rates by another half-point and vows a similar hike at its next meeting. ECB President Christine Lagarde said Thursday that even beyond an intended hike in March, “we know that we are not done.” The bank is aggressively raising rates to fight inflation that has slowed but is still way too high at 8.5% annually. The ECB got a later start in raising rates than the U.S. Federal Reserve and as a result is now moving faster. The Fed hiked interest rates by a quarter-point Wednesday, while the Bank of England went bigger with a half-point hike Thursday.