ECB raises key interest rate for 1st time in 11 years amid inflation

Economy

The European Central Bank on Thursday raised its benchmark interest rate from zero to 0.5 percent, the first such rate hike in 11 years, joining the U.S. Federal Reserve and other central banks in their monetary tightening to fight soaring inflation. The decision at the ECB's policy meeting comes as the Russian invasion of Ukraine pushed up prices of goods from food to energy, putting pressure on household budgets across the bloc. The rate hike is effective from Wednesday next week. The ECB decided on the larger-than-expected rate rise after having said last month that the rate would be up by ...

Kyodo News

Kyodo News