The European Central Bank hiked interest rates on Thursday by 50 basis points to 2.5%, as expected, in the face of surging inflation.
The Bank said that based on “the substantial upward revision to the inflation outlook”, it expects to raise them further.
“In particular, the Governing Council judges that interest rates will still have to rise significantly at a steady pace to reach levels that are sufficiently restrictive to ensure a timely return of inflation to the 2% medium-term target,” it said.
–More to follow–
