The European Central Bank raised the interest rate.
The European Central Bank raised the interest rate for the ninth consecutive time in an effort to curb inflation.
According to Reuters, Christine Lagarde, President of the European Central Bank, announced on Thursday, July 27, that the interest rate increased by another 0.25 percent, reaching 3.75 percent.
After Russia’s military invasion of Ukraine on February 24, 2022, and the surge in global inflation due to rising energy prices, as well as disruptions in the supply chain caused by the COVID-19 pandemic since 2020, central banks in many countries have acted to raise interest rates to control price growth.
The U.S. Federal Reserve also raised the interest rate on Wednesday of this week for the eleventh time in the past 17 months as part of efforts to curb inflation.
Inflation in the Eurozone peaked at 10.6 percent last October but dropped to 5.5 percent last month. This figure is still significantly higher than the European Central Bank’s target of achieving 2 percent inflation.
English
View this article in English