Europe's central bank is set to halt rate hikes as the Mideast war casts a shadow over the economy

The European Central Bank is likely taking a break from interest rate increases. The pause expected Thursday would follow 10 straight hikes, dating back to July 2022. That record pace of hiking was aimed getting painful inflation under control. But now inflation is down, and the Israel-Hamas war is casting a shadow of uncertainty over the global economy. There are fears about rising oil prices. With that backdrop and concerns growing that high credit costs used to fight inflation might slow economic growth and tip Europe into a recession, analysts say the ECB would hold rates steady.