European Central Bank leader doubles down on rate increases

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The head of the European Central Bank underlined the bank’s determination to fight rampant inflation with more interest rate increases on top of recent record hikes. ECB President Christine Lagarde said Friday that “our job is far from being completed” and that even a mild recession would not be enough to bring price increases back under control. In a lecture at the central bank of Estonia, she said the bank “will not let high inflation become entrenched” by letting expectations of higher prices become baked into wages and costs. The bank has been raising rates at the fastest pace since the euro was launched in 1999, mirroring the hikes of the U.S. Federal Reserve and Bank of England.