The European Central Bank (ECB) has raised interest rates again to maintain its battle against inflation but eased the pace of increase.
The main policy rate was hiked by 0.25 percentage points to 3.25% by the euro area central bank’s governing council.
It followed a similar increase from the US Federal Reserve on Wednesday night despite the well-documented banking industry crisis, which is linked to rising interest rates, in the world’s largest economy.
Central banks have been raising interest rates in an effort to bring down inflation which has soared following the invasion of Ukraine and the supply chain difficulties associated with COVID-19 lockdowns.
Inflation stood at 7% in the 20 countries using the euro, more than triple the ECB’s 2% target rate of inflation.
