ECB discusses raising interest rates by 50 basis points

European Central Bank (ECB) policymakers are considering raising interest rates by a bigger-than-expected 50 basis points to tame record-high inflation, it announced at their meeting on Thursday.

The inflation in the eurozone has spiked to multiyear highs, while economic growth has slowed and a political crisis in Italy is keeping investors on edge.

The single European currency the euro that has decreased two decades ago.

The ECB is set to deliver its first-rate hike in more than a decade on Thursday against a difficult economic backdrop exacerbated by the war in Ukraine.

Inflation is high and rising while economic growth has slowed and a political crisis in Italy is keeping investors on edge.

ECB president Christine Lagarde had announced in June that the bank was planning to implement its first interest rate hike in 11 years: an increase of its benchmark interest rate by 25 basis points, likely to be followed by another 50-point hike in September.

However, more commercial banks in the euro area have already stopped charging their clients for the money they hold with them — in Germany.

In addition to that there are 50 commercial lenders have done so, with more expected to follow in the next few weeks.