ECB doubles rate to most in over a decade despite recession fear

The European Central Bank doubled its key interest rate to the highest level in more than a decade, intensifying its broadside against record inflation in the face of a likely recession.

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Policymakers in Frankfurt delivered a second straight three-quarter-point hike on Thursday as economists expected. That brings the deposit rate, which was below zero as recently as July, to 1.5%.

In plowing on with increases even as energy-market turmoil batters the 19-nation euro-zone economy, the ECB reaffirmed its commitment to wrest back control over prices that are surging at five times the 2% target.

The move matches the recent pace of the Federal Reserve, whose assault on inflation began earlier, and has boosted the dollar at the euro's expense. Canada, however, wrong-footed investors on Wednesday by unexpectedly slowing the speed of its monetary tightening as its economy flirts with a downturn.

Money markets pared rate-hike wagers slightly, pricing 56 basis points of tightening in December versus 58 basis points earlier.