The European Central Bank is set for another large interest rate increase to fight painfully high inflation even after the U.S. Federal Reserve slowed its pace, a divergence that underlines Europe's later start and could speed the euro's rebound from recent lows against the dollar.
ECB President Christine Lagarde has made clear that a rate hike of half a percentage point is in the offing at the bank's meeting Thursday “and possibly at the one after that, and possibly thereafter.”
