ECB signals first interest rate hike in a decade

25 basis points from July

The European Central Bank (ECB) will be raising key interest rates by 25 basis points at its July monetary policy meeting, marking the first interest rate hike in over a decade.

The ECB said it also expects to raise rates in September by a "larger increment" if the current inflation outlook does not improve. Beyond September, it anticipates that "a gradual but sustained path of further increases in interest rates will be appropriate". "In the meantime, the Governing Council decided to leave the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility unchanged at 0.00%, 0.25% and -0.50% respectively," the ECB said after the governing council met in Amsterdam.  The central bank will also ...