European Central Bank tipped to follow US lead with fresh interest rate hike

Christine Lagarde leads the ECB’s governing council (AP Photo/Michael Probst, File)

The European Central Bank is set to follow the lead of the US Federal Reserve in making its second big interest rate increase in a row on Thursday, underlining its determination to stamp out the record inflation that threatens to sink the 19-country euro area into recession.

An increase of three-quarters of a percentage point is the likely outcome of the meeting based on public comments from bank officials.