BREAKING NEWS: European Central Bank raises interest rates for first time in 11 years

The European Central Bank has raised its interest rates for the first time in 11 years, as announced on Thursday, July 21.

The European Central Bank issued an official statement on their hike of interest rates stating:

“Today, in line with the Governing Council’s strong commitment to its price stability mandate, the Governing Council took further key steps to make sure inflation returns to its 2% target over the medium term. The Governing Council decided to raise the three key ECB interest rates by 50 basis points and approved the Transmission Protection Instrument (TPI).”

Their decision is reportedly based on an assessment of inflation risks and the “reinforced support provided by the TPI for the effective transmission of monetary policy. ”

The move hopes to support the return of inflation to the Governing Council’s medium-term target by “strengthening the anchoring of inflation expectations and by ensuring that demand conditions adjust to deliver its inflation target in the medium term.”

The TPI details are set to be released later today.

The news comes just after reports of inflation increasing a whopping 9.6 per cent in Europe, with Spain sitting high on the leader board.

The rate of inflation in Europe saw the increase during the month of May, with Spain above average, currently sitting at an inflation rate of 10.2 per cent.

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