ECB raises interest rates by 25bps

The European Central Bank(ECB) hikes interest rates by 25 basis points on Thursday, as a bid to cool inflation. This is the highest record since the launch of Euro currency in 1999.

“Inflation continues to decline but is still expected to remain too high for too long.” the ECB said in a statement.

Annual inflation in the 20-country-bloc is still high, recording 5.3 percent last month as rising oil prices pushed up energy costs.

The euro area economic growth in the April/June period expanded slowly by 0.1 percent compared with the first quarter.

The ECB has now raised its main interest rate at 10 consecutive meeting.

“Inflation continues to decline but is still expected to remain too high for too long. We are determined to ensure that inflation returns to our two per cent medium-term target in a timely manner. In order to reinforce progress towards our target, the Governing Council today decided to raise the three key ECB interest rates by 25 basis points.” ECB President Christine Lagarde