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ECB's Guindos Says Jumbo Hike Aimed at Inflation Expectations
The European Central Bank’s jumbo increase in interest rates last week was designed to keep inflation expectations anchored, according to Vice President Luis de Guindos. The three-quarter-point move marked an unprecedented monetary-tightening step by the ECB, which has been accused of acting too sluggishly to counter record euro-zone price gains. In announcing the decision, policy makers also said they wanted to “dampen demand” -- despite Europe’s energy crisis tipping it toward a recession. “For a central bank its credibility is fundamental,” Guindos said Monday in a speech in Valladolid, Spain. “If ... (full story)