ECB raises interest rates, saying 'inflation too high for too long'

The European Central Bank raised its key policy interest rates by 25 basis points on Thursday against the high inflation pressures.

The inflation outlook continues to be "too high for too long," the bank said in a statement.

The rate on the main refinancing operations and rates on the marginal lending facility and the deposit facility were increased to 3.75%, 4%, and 3.25%, respectively.

The bank's asset purchase program (APP) is decreasing, it said, adding: "The decline will amount to €15 billion ($16.5 billion) per month on average until the end of June.

"The Governing Council expects to discontinue the reinvestments under the APP as of July 2023."