ECB has raised rates at the fastest pace in its history to combat inflation that hit 10.7% in the eurozone in October. Inflation has been fed by high natural gas prices caused by Russia’s cutbacks in gas supply during the war in Ukraine and bottlenecks in supplies of parts and raw materials. Analysts expect more increases to come from a Dec. 15 meeting. Higher rates are a key tool to contain inflation, but their use can raise concerns about the impact on growth. Bank officials say higher rates now will avoid the need for even more drastic measures later on if inflation continues to run out of control if it continues to rise in the future. Lagarde cautioned governments against excessive spending on support for consumers and businesses hit by high energy costs . . .
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