ECB plans to tackle inflation with big rate hike

On Thursday, ECB officials spoke out in favor of another major interest rate hike. It was caused by inflation in the euro zone's largest economy hitting double digits and exceeding expectations. This may signal that the inflation rate in the euro zone will reach a new record high.

The European Central Bank hiked rates by 125 basis points in total at its past two meetings. The ECB promised to continue interest rate hikes as rising food and energy prices are likely to affect all areas of the economy and intensify underlying price pressures. 

ECB head Gediminas Simkus told Bloomberg TV in an interview in Vilnius that he was advocating for a 75 basis point hike to interest rates. According to him, 50 basis points is the minimum.

It is expected that rates will reach 2% by the end of the year, and next spring they will jump to about 3%. 

There are more rate hike talks, despite the fact that some people believe a recession is coming.