European interest rates set to rise by a further 0.5%

The move will further push up the cost of borrowing as officials look to limit inflation

Christine Lagarde, the ECB president, has pledged that she will “stay the course” in beating back inflation. Picture: Getty

The European Central Bank is about to deliver another half-point increase in interest rates, though investors will be more interested in clues about where borrowing costs are headed beyond this week.

A second straight hike on Thursday of 50 basis points is widely predicted by economists and markets after being flagged repeatedly by officials.

Whether a third follows in March is a matter of intensifying debate as inflation retreats but other gauges suggest more action ...