ECB hikes interest rates again in anti-inflation bid

The European Central Bank on Thursday announced a large half-point interest rate hike to combat inflation and said it intended to do the same in March.

The rise takes the rate it pays on bank deposits to 2.5%, in line with what it said in December and with market expectations. It brings the bank's three main rates to a range of between 2.5 and 3.25%.

The move, the fifth hike in a row, comes as inflation reached 8.5% in the 20 countries using the euro in January — still a high rate, but down from the double figures seen late last year.