ECB raises rates by unprecedented 0.75%

Up from 0.5%

The European Central Bank has raised interest rates to 1.25% in an unprecedented move, up 75 basis points.

In a statement today, the ECB said it had "significantly revised up their inflation projections", now expecting it to average 8.1% in 2022, 5.5% in 2023 and 2.3% in 2024. As inflation has continued to soar across the continent, hitting 9.1% in August, policymakers have identified it as their chief concern.  The central bank previously hiked interest rates by 0.5% from zero in July. The ECB also said that despite a rebound in the first half of this year, "recent data point to a substantial slowdown in euro area economic growth," with the economy now predicted to stagnate for the res...