ECB hikes rate, with pledge of 'significant' increases to come in inflation battle

Latest increase means households paying €415 more a month, or almost €5,000 a year, since ECB started hiking rates in July

ECB president Christine Lagarde said it is set on a path of significant rate increases.

European Central Bank president Christine Lagarde talked tough about fighting inflation after announcing a rate increase of half a point and kept markets guessing by pledging there were further significant rate hikes to come.

The rate increase was the fourth since the central bank started raising rates in July in its battle to get soaring inflation, currently running at around 10%, back to its medium target rate of 2%, and the increase of half a point, or 50 basis points, was widely expected.