- The European Central Bank (ECB) has raised interest rates by 0.75 percentage points today, and while further rate hikes will follow, ECB President Christine Lagarde said this would be decided on a case-by-case basis.
- As inflation has risen all over the Euro area, the ECB is under pressure to fight back with its monetary policy tools, the most important of which is the key interest rate which influences the costs of the loans private banks give to businesses and private households.
- Interest rate increases are also meant to signal to citizens and companies that the central bank is serious about fighting inflation.
ECB hikes interest rates, insists on price stability mandate
