ECB raises interest rates to highest level since 2009

Benchmark deposit rate rises to 1.5%

The European Central Bank has raised interest rates by 0.75 percentage points to 1.5%, the highest level since 2009, as Europe continues to battle against inflation amidst the backdrop of a looming recession.

The central bank said its benchmark deposit rate, which was below zero as recently as July, would rise from 0.75% to 1.5%, the first time it has made two consecutive rate increases of that size.  Although the move was in line with market expectations, the main change in the statement was the dropping of the reference to rate hikes happening over the "next several meetings". In a statement, the ECB said that it still expected to raise rates further because inflation remained "far too high". Annual inflation is up to 9.9% in the euro area.  ECB raises rates by unprecedented 0.75% ...