The European Central Bank (ECB) lifted its benchmark interest rate by 75 basis points on Thursday in order to combat record inflation.
The bank announced in Frankfurt that the key interest rate at which commercial banks could borrow money from the ECB would thus rise to two per cent.
“The Governing Council took today’s decision and expects to raise interest rates further, to ensure the timely return of inflation to its two per cent medium-term inflation target,” the ECB said in a press release.
“Inflation remains far too high and will stay above the target for an extended period,” it said.
dpa
