ECB hikes rates to 22-year high
The European Central Bank hiked interest rates to a 22-year high Thursday and said another increase in July was "very likely", as it pushed ahead with its fight against inflation despite a darkening eurozone economy.
The ECB's governing council increased rates by a further 25 basis points, taking the closely-watched deposit rate to 3.50 per cent -- its highest level since 2001.
"Inflation has been coming down but is projected to remain too high for too long," ECB president Christine Lagarde said.
The move comes a day after the US Federal Reserve held off from raising rates after 10 straight increases.
"We're not thinking about pausing," Lagarde said, adding that the ECB still has "ground to cover" on rates after the Frankfurt institution lifted its inflation outlook for 2023-2025 in fresh forecasts on Thursday.
"Barring a material change to our baseline, it is very likely the case that we will continue to increase rates in July," she told reporters.
The ECB has lifted borrowing costs at the fastest rate ever to combat red-hot inflation after Russia's war in Ukraine sent food and energy prices soaring, raising its key rates by 4.00 percentage points since July.
Comments