ECB to hike rates for first time in 11 years in bid to tame inflation

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DPA

The European Central Bank (ECB) said on Thursday interest rates will climb 0.25 percentage points in July and that its asset purchases will come to a stop as it battles to tame record inflation. As a result of the move, overnight deposit rates for banks at the ECB are to rise from negative 0.5% while lending rates to banks are to increase from the ECB’s current rate of zero. The first rate hike in 11 years is an attempt by the ECB to bring down soaring prices in the 19-member eurozone, where inflation hit 8.1% last month, far above the central bank’s target of just under 2%. “Projections indic…

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