ECB in historic interest rate hike amid efforts to curb inflation

Frankfurt, Germany, Sep 8 (EFE).- The European Central Bank on Thursday raised interest rates by 0.75 percentage points to 1.25%, the largest hike in the eurozone’s history as the bloc moves to curb soaring inflation.

Inflation rates hit 9.1% in the eurozone in August, according to the European’s statistical office Eurostat.

“The Governing Council took today’s decision, and expects to raise interest rates further, because inflation remains far too high and is likely to stay above target for an extended period,” the ECB said in a statement.

“Soaring energy and food prices, demand pressures in some sectors owing to the reopening of the economy, and supply bottlenecks are still driving up inflation. Price pressures have continued to strengthen and broaden across the economy and inflation may rise further in the near term.”

The ECB raised its three “key” interest rates by 0.75 percentage points. Its “main refinancing” rate was raised to 1.25%, its marginal lending facility, the rate at which it lends to banks, to 1.50% and its deposit facility to 0.75%, up from zero. EFE

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