ECB to hike interest rates

Maiden moves: A tourist boat travels along the River Main near the ECB headquarters in Frankfurt, Germany. The bank is likely to take the first steps in reducing its €8.8 trillion (RM41.57 trillion) balance sheet. — Bloomberg

FRANKFURT: The European Central Bank (ECB) will raise interest rates again and likely reel in a key subsidy to commercial banks, taking another huge step in tightening policy to fight off a historic surge in inflation.

Fearing that rapid price growth is becoming entrenched, the ECB has already raised rates at the fastest pace on record, and there is little let-up in sight as unwinding a decade worth of stimulus could take it well into next year and beyond.