ECB raises interest rates amid inflation

The European Central Bank (ECB) sprung a surprise Thursday when it raised interest rates by 50 basis points for the first time in 11 years.

It is an attempt to curb soaring inflation in the Eurozone that reached 8.6% in June—well above ECB’s 2% target.

The ECB pushed its refinancing operation base rates up to 0.50%, joining a long list of banks across the globe that jacked up borrowing costs.

Christine Lagarde, the ECB President, said, “We expect inflation to remain undesirably high for some time, owing to continued pressures from energy and food prices, and pipeline pressures in the pricing chain.”