The European Central Bank raised interest rates for the ninth straight time in its yearlong campaign to stamp out painfully high inflation, coming as worries about recession fuel speculation that Thursday's hike could be its last.
ECB President Christine Lagarde had all but promised the quarter-percentage point increase and left the door open to future hikes, saying data would determine one decision to the next.
"We have an open mind as to what the decisions will be in September and in subsequent meetings," she told reporters. "So we might hike and we might hold. And what is decided in September is not definitive. It may vary from one meeting to the other."
Central banks around the world have been raising borrowing costs to combat inflation unleashed by higher energy prices after Russia invaded Ukraine and supply chain backups as the global economy recovered from the coronavirus pandemic.
Now, the question is whether the rapid rate hikes are reaching their end.
The ECB move followed a decision by the U.S. Federal Reserve on Wednesday to raise its key rate for the 11th time in 17 months. Fed Chair Jerome Powell was noncommittal about whether more rate increases might be coming, though inflation is lower in the U.S. -- at 3% -- than it is in Europe.
Inflation in the eurozone has fallen from its peak of 10.6% in October to 5.5% in June -- still well above the bank's target of 2% considered best for the economy.
Households and businesses are facing a double hit from price spikes and higher rates, which make it more expensive for people to get loans to buy homes and cars or for companies to get new equipment or build facilities.
Rates are working their way through the economy, weighing on home prices and construction activity, and are designed to work so people spend less and prices come down. But they can also weigh on economic growth, and the eurozone already has seen back-to-back quarters of contraction.
With Thursday's quarter-point increase, the ECB has raised its benchmark deposit rate from minus 0.5% to 3.75% in one year, the fastest credit tightening since the euro currency was launched in 1999.
And the bank kept the door "wide open" for more increases, said Carsten Brzeski, chief eurozone economist at ING Bank.
"The ECB is again running the risk of being behind the curve. This time not by being too benign on inflation but rather by being too optimistic and too benign on the economic impact of its own policy measures," he said.
Lagarde acknowledged that "the economic outlook for the euro area has deteriorated" and will stay weak in the short run. But she said inflation is expected to fall and incomes to rise, helping the economy to recover.
The rate hikes are already working: Home prices have started to decline after a yearslong rally, and business loans are at their lowest level since statistics started in 2003. The outlook for construction companies in Germany also hit its lowest level since 2010.
Fears about recession are focusing on Germany, Europe's industrial powerhouse and largest economy. It is the only developed economy that the International Monetary Fund expects to shrink this year.'
Germany already has recorded two straight quarters of falling economic output, meeting one definition of recession. A third is possible, with figures for the April-to-June period coming out Friday.
The German economy is going through a "slowcession" -- "stuck in the twilight zone between stagnation and recession," Brzeski says.
The whole eurozone economy also shrank slightly in the first three months of the year, likewise the second straight quarterly decline. Preliminary figures for the second quarter are due Monday.
The economists on the euro area business cycle dating committee, which declares recessions, use a broader set of data than just two quarters of shrinking output figures in its decisions. The committee said June 30 that talk of a eurozone recession was "premature" given record low unemployment of 6.5%.
ECB officials say getting tough on inflation now avoids even more drastic credit restrictions later if inflation becomes ingrained through expectations for higher wages and prices.
Prime Minister Justin Trudeau said many Canadians are taking their cost-of-living frustrations 'out on me for understandable reasons,' during his U.S. late-night television debut on 'The Late Show' with Stephen Colbert Monday night.
Israel and Hezbollah traded fire again on Tuesday -- including a new Israeli airstrike on Beirut -- as the death toll from a massive Israeli bombardment climbed to nearly 560 people and thousands fled from southern Lebanon with the two sides on the brink of all-out war.
While many Canadians no longer stress as much about COVID-19 as they did during its peak, health experts say a new variant has been spreading in some parts of the world and is now present in Canada.
Police in northern Switzerland said Tuesday that several people have been detained and a criminal case opened in connection with the suspected death of a person in a new 'suicide capsule.'
The calls are growing louder for city council to tighten the rules governing short-term accommodations, including those advertised on websites like Airbnb and Vrbo, after students arrived by the busload at a rented house in the Masonville neighbourhood.
Genealogy and family tree tracking site Ancestry announced on Monday that by using “billions of historical records and public family trees,†they’ve discovered that the two music powerhouses are actually seventh cousins, once removed.
B.C.’s Civil Resolution Tribunal has ordered WestJet to refund a family in full for their diverted flight and compensate them for associated costs.
Coca-Cola is discontinuing the production of its new Spiced flavour just six months after the soda hit shelves, marking the end of a disappointing attempt to attract younger drinkers.
A man accused of driving his truck into a march for B.C. residential school survivors two years ago has been found guilty of dangerous driving.
The calls are growing louder for city council to tighten the rules governing short-term accommodations, including those advertised on websites like Airbnb and Vrbo, after students arrived by the busload at a rented house in the Masonville neighbourhood.
The Canada Border Services Agency (CBSA) reported this week that officers in the agency's Montreal Marine and Rail Services seized 78 vehicles and transferred them to police. Numbers of stolen vehicles in Quebec continue to skyrocket.
A former Lethbridge pastor who bilked millions out of hundreds of southern Albertans has appealed his conviction and sentence.
A man accused of driving his truck into a march for B.C. residential school survivors two years ago has been found guilty of dangerous driving.
It's been exactly three years since Canadian Michael Kovrig returned to Canada after spending 1,019 days in a Chinese prison. Now, he's publicly speaking out about his arrest and detainment for the first time.
On Sept. 20, Justice R.E. Nation of the Alberta Court of King's Bench found Craig McMorran guilty of fraud, money laundering and stealing a cottage from its rightful owners.
Japan's top diplomat asked China to ensure the safety of Japanese citizens there after the fatal stabbing of a Japanese schoolboy, and demanded a crackdown on what she called 'groundless, malicious and anti-Japanese' social media posts that threaten children's safety.
The powerful sister of North Korean leader Kim Jong Un vowed Tuesday to boost the country's nuclear war capability and take other steps to protest the recent arrival of a nuclear-powered U.S. submarine in South Korea.
Prosecutors in Turkiye have charged 13 public officials over a fire that killed 29 people at an Istanbul nightclub that was undergoing renovation, state-run media reported Tuesday.
Police in northern Switzerland said Tuesday that several people have been detained and a criminal case opened in connection with the suspected death of a person in a new 'suicide capsule.'
A mentally ill man who killed 10 people at a Colorado supermarket in 2021 was convicted Monday of murder and faces life in prison.
Israel and Hezbollah traded fire again on Tuesday -- including a new Israeli airstrike on Beirut -- as the death toll from a massive Israeli bombardment climbed to nearly 560 people and thousands fled from southern Lebanon with the two sides on the brink of all-out war.
The House of Commons is set to debate a Conservative non-confidence motion today, as the Tories try to take down Prime Minister Justin Trudeau's government.
Prime Minister Justin Trudeau said many Canadians are taking their cost-of-living frustrations 'out on me for understandable reasons,' during his U.S. late-night television debut on 'The Late Show' with Stephen Colbert Monday night.
A federal inquiry into foreign interference is slated to hear today from parliamentary security officials including House of Commons sergeant-at-arms Patrick McDonell.
Respiratory syncytial virus, or RSV, season is just a few months away, but new vaccine options have already arrived for Ontario residents who may be vulnerable to the winter bug.
Private nursing agencies could cost Canadian health-care facilities approximately $1.5 billion in 2023-24, according to a new report commissioned by the Canadian Federation of Nurses Unions.
There are 'no restrictions' on the right to receive health services in Quebec for English speakers, according to a new clarification document issued by the Quebec Health Ministry on Monday.
A new analysis of dozens of arrowheads is helping researchers piece together a clearer portrait of the warriors who clashed on Europe’s oldest known battlefield 3,250 years ago.
Finally, an emoji to represent us all is coming soon: An exhausted face with bags under its eyes.
A Soyuz capsule carrying two Russians and one American from the International Space Station landed Monday in Kazakhstan, ending a record-breaking stay for the Russian pair.
Beverly Glenn-Copeland says he's been diagnosed with dementia and will play his final concert tour dates over the next two weeks.
Genealogy and family tree tracking site Ancestry announced on Monday that by using “billions of historical records and public family trees,†they’ve discovered that the two music powerhouses are actually seventh cousins, once removed.
The sexual assault trial for Canadian musician Jacob Hoggard, the former frontman for the band Hedley, is expected to begin in northern Ontario this week, following a jury selection process.
Cineplex Inc. has been ordered to pay a record $38.9 million fine after the Competition Tribunal found the theatre owner guilty of deceptive marketing practices.
Coca-Cola is discontinuing the production of its new Spiced flavour just six months after the soda hit shelves, marking the end of a disappointing attempt to attract younger drinkers.
B.C.’s Civil Resolution Tribunal has ordered WestJet to refund a family in full for their diverted flight and compensate them for associated costs.
From cellphone 'hotels' to patchwork policies to recalibrating lesson plans, teachers and schools across Canada are learning to navigate a classroom without cellphones.
The Newcomers Football Club, an impromptu team made up of asylum-seekers, has helped provide Boubacar Lukaku and others with a joy that erases their stress. And it's helped connect them with a supportive community as they navigate the challenges of a new country.
The City of Ottawa says it is recruiting a 'nightlife council' to aid the city's recently appointed nightlife commissioner.
The Boston Red Sox kept their playoff hopes alive on Monday by beating the Toronto Blue Jays 4-1 in the first of a three-game road series.
Surfer Mickey Brennan says he's 'amazed' to be alive after wiping out in a giant wave off Tasmania.
The Toronto Raptors are planning to retire Vince Carter's jersey next month, sources tell TSN.
The Canada Border Services Agency (CBSA) reported this week that officers in the agency's Montreal Marine and Rail Services seized 78 vehicles and transferred them to police. Numbers of stolen vehicles in Quebec continue to skyrocket.
Struggling Jeep and Ram maker Stellantis is looking for a CEO to succeed Carlos Tavares, but the company says it's just part of a normal leadership succession plan.
The U.S. Commerce Department on Monday will propose a ban on the sale or import of smart vehicles that use specific Chinese or Russian technology because of national security concerns, according to U.S. officials.
Giant gourds took over a Manitoba community this weekend.
Fire has destroyed a barn and 17,000 plants at a family-owned business in Lower Coverdale, N.B.
Before influencers on social media, Canada’s Jeanne Beker was bringing the world of high fashion down to earth and as Calgary’s Glenbow Museum gets a major make-over, it will include a new exhibition showcasing the pop culture icon.
A sea lion swam free after a rescue team disentangled it near Vancouver Island earlier this week.
A Nova Scotian YouTuber has launched a mini-truck bookmobile.
Cole Haas is more than just an avid fan of the F.W. Johnson Wildcats football team. He's a fixture on the sidelines, a source of encouragement, and a beloved member of the team.
Getting a photograph of a rainbow? Common. Getting a photo of a lightning strike? Rare. Getting a photo of both at the same time? Extremely rare, but it happened to a Manitoba photographer this week.
An anonymous business owner paid off the mortgage for a New Brunswick not-for-profit.
They say a dog is a man’s best friend. In the case of Darren Cropper, from Bonfield, Ont., his three-year-old Siberian husky and golden retriever mix named Bear literally saved his life.
A man accused of driving his truck into a march for B.C. residential school survivors two years ago has been found guilty of dangerous driving.
BC Conservative leader John Rustad dropped a major policy plan Sunday, pledging to eliminate supervised drug consumption sites across B.C. and replace them with intake centres for treatment and recovery.
B.C.’s Civil Resolution Tribunal has ordered WestJet to refund a family in full for their diverted flight and compensate them for associated costs.
Respiratory syncytial virus, or RSV, season is just a few months away, but new vaccine options have already arrived for Ontario residents who may be vulnerable to the winter bug.
A rainfall warning is in effect for Toronto and many other regions across southern Ontario with Environment Canada calling for up to 50 millimetres of rainfall over a period of less than 24 hours.
One suspect is in custody and a second is still outstanding after Toronto police say cruisers were damaged while officers attempted to intervene in the theft of two luxury vehicles in an underground parking garage in the city’s downtown core.
A man is in critical condition following a shooting in the northeast Calgary community of Cityscape.
A former Lethbridge pastor who bilked millions out of hundreds of southern Albertans has appealed his conviction and sentence.
Stories We Have Earned: The Stoney Nakoda Film Project explores Îyârhe (Stoney) Nakoda First Nation’s historic relationship with film and the exploitation of the Nation’s culture and customs for entertainment.
The Canada Revenue Agency has provided new data on the number of employees who were found to have received the Canada Emergency Response Benefit during the COVID-19 pandemic.
Respiratory syncytial virus, or RSV, season is just a few months away, but new vaccine options have already arrived for Ontario residents who may be vulnerable to the winter bug.
The City of Ottawa says it is recruiting a 'nightlife council' to aid the city's recently appointed nightlife commissioner.
A fire in a container at one of the Port of Montreal's terminals prompted the city to issue a containment notice for the area adjacent to the port on Monday evening, in the Mercier--Hochelaga-Maisonneuve borough.
The Canada Border Services Agency (CBSA) reported this week that officers in the agency's Montreal Marine and Rail Services seized 78 vehicles and transferred them to police. Numbers of stolen vehicles in Quebec continue to skyrocket.
Montreal police (SPVM) are investigating after a man was stabbed shortly before midnight in the St. Henri neighbourhood.
Police have charged a former worker with Edmonton Public Schools with forgery and fraud over $5,000 for allegedly faking asbestos reports over two years. And Jason McCallum is still at large.
Alberta is one of the few provinces without the ability to seize a vehicle traveling 50 km/h over the speed limit.
The House of Commons is set to debate a Conservative non-confidence motion today, as the Tories try to take down Prime Minister Justin Trudeau's government.
Public health officials in Prince Edward Island are investigating an outbreak of gastrointestinal illness reported among 50 people who attended a shellfish festival over the weekend.
A man in his 60s was struck by an SUV and killed while walking on Wheeler Boulevard in Moncton, N.B., late Monday afternoon.
The Fredericton Police Force is warning people to stay away from part of the city due to bear sightings Tuesday morning.
It was a tragic ending to the search for a six-year-old boy in northeastern Manitoba who had been missing since Wednesday.
A 20-year-old man has been charged in connection with the death of a 52-year-old woman in an Assiniboine Avenue apartment on Sunday.
There are 14 MRIs in Manitoba, and now there's a renewed push to get another one that would go inside the new hospital being built in Portage la Prairie.
The Saskatchewan Government is fighting to have a Court of King's Bench decision reversed. A decision which would allow a constitutional challenge of its Parents' Bill of Rights.
Farmer are thinking about more than their crops this harvest. They're talking about the upcoming Saskatchewan election and how provincial and federal policies may impact their economic future.
Emergency Crews including Regina Fire were called to a house fire in the community of Grand Coulee on Monday afternoon.
Three people were killed Monday morning in a crash north of Wellesley.
Police say a toddler in Cambridge, Ont., who was reported missing early Monday morning, has since died.
Residents at a Kitchener townhouse complex still haven’t been able to return to their homes, even though it's been 11 months since a fire at a neighbouring unit.
The Saskatchewan Government is fighting to have a Court of King's Bench decision reversed. A decision which would allow a constitutional challenge of its Parents' Bill of Rights.
Fire crews are battling a blaze at the Candle Lake Golf Course clubhouse on Monday morning.
The Saskatchewan Ministry of Education says a woman facing an assault charge is no longer working at a private Christian school where the alleged incident took place.
We've all had neighbours we didn't like, but two people from Sault Ste. Marie have been awarded more than half a million dollars for the 'extreme' behaviour of the people who lived next to them.
Prime Minister Justin Trudeau said many Canadians are taking their cost-of-living frustrations 'out on me for understandable reasons,' during his U.S. late-night television debut on 'The Late Show' with Stephen Colbert Monday night.
A family dispute related to a property matter turned ugly over the weekend when a 71-year-old hit their head on the pavement after being pushed.
The calls are growing louder for city council to tighten the rules governing short-term accommodations, including those advertised on websites like Airbnb and Vrbo, after students arrived by the busload at a rented house in the Masonville neighbourhood.
Showers are expected to push into the region through the afternoon as a moisture laden system moves into the Great Lakes Basin.
519 Meets organized a car rally in south London on Saturday in a Value Village parking lot, and it turned out to be their largest ever.
Weather warnings and weather statements have been issued for central Ontario.
Casino Rama announced three new performances will hit the stage this winter.
Tree lighting, horse-drawn rides and the Santa Claus parade all come packaged together in November.
Emergency crews are on scene of a multi-vehicle crash in Essex County.According to OPP, County Road 20 is closed between Iler road and McCormick Road in Harrow.
Lawyers can't agree on how much time they feel Ryan Turgeon should spend in jail. In April, the 39 year old was found guilty of sexual exploitation and making sexually explicit material available to a minor.
Rain could be heavy at times across Windsor-Essex on Tuesday. Environment Canada has issues a special weather statement, with total local rainfall amounts near 30 to 45 mm.
B.C.’s Civil Resolution Tribunal has ordered WestJet to refund a family in full for their diverted flight and compensate them for associated costs.
BC Conservative leader John Rustad dropped a major policy plan Sunday, pledging to eliminate supervised drug consumption sites across B.C. and replace them with intake centres for treatment and recovery.
Mounties are asking witnesses to come forward after a woman was struck by a vehicle and seriously injured in a crosswalk in Nanaimo, B.C.
A pair of runaway pigs are in the custody of an animal sanctuary in the Okanagan after evading police and volunteers for hours earlier this week.
The Red Bridge, a historic landmark in Kamloops, B.C., was completely destroyed by fire early Thursday morning.
Animal protection officers in British Columbia have rescued three pit bulls – including one that gave birth to 10 puppies – from a rat-infested home in Kelowna.
A former Lethbridge pastor who bilked millions out of hundreds of southern Albertans has appealed his conviction and sentence.
Farmers in southern Alberta are working to wrap up harvest, with 80 per cent of major crops in the bin, according to the province's latest crop report.
Monday marked the official start of Reconciliation Week in Lethbridge.
We've all had neighbours we didn't like, but two people from Sault Ste. Marie have been awarded more than half a million dollars for the 'extreme' behaviour of the people who lived next to them.
Officials in the City of Timmins say the state of Municipal Road, which connects Timmins and Iroquois Falls, is well beyond the patch-up phase.
After playing the lottery for more than 40 years, a Greater Sudbury woman made a huge windfall playing a scratch ticket game.
Newfoundland and Labrador sponsored a minor football team in England, now they’re about to play one of the biggest clubs in European soccer.
Newfoundland and Labrador's chief medical officer is monitoring the rise of whooping cough infections across the province as cases of the highly contagious disease continue to grow across Canada.
A 16-year-old biennial event aimed at fostering business in the country's eastern Arctic and northern regions has been cancelled indefinitely as a dispute unfolds between Inuit in Canada and a Labrador group claiming to share their heritage.
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