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ECB to raise interest rates for the first time in 11 years
ECB to raise interest rates for the first time in 11 years
Published July 21,2022
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A symphony of light consisting of bars, lines and circles in blue and yellow, the colours of the European Union, illuminates the south facade of the European Central Bank (ECB) headquarters in Frankfurt, Germany, December 30, 2021 (REUTERS)
The European Central Bank is expected to raise interest rates for the first time in 11 years on Thursday as policymakers across Europe attempt to tackle soaring inflation.
Consumer price growth is reaching double-digit territory in the bloc as European economies suffer from the fallout of Russia's war in Ukraine, which is now almost five months old.
The interest rate hike by the ECB comes much later than other major central banks including the U.S. Federal Reserve.
A rate increase of 0.25 percentage points has been signalled, but a larger increase of half a percentage point is also conceivable.
The euro's recent drop to a two-decade low against the dollar has compounded inflation fears.
ECB chief Christine Lagarde is scheduled to give a press conference announcing the move at 2.45 pm (1245 GMT).
