ECB hikes rates to match record high as inflation set to remain 'too high for too long'

Highest level since 2008

The European Central Bank has raised interest rates by 25 basis points, bringing European rates to match the record high of 3.75% set in October 2000.

Making its ninth consecutive hike of the cycle, the central bank met expectations with the rise as it maintained the fastest tightening pace in its history. BofA: European managers remain 'downbeat on growth' Eurozone inflation sat at 5.5% in June, down from 6.1% the month before but still substantially above the ECB's target of 2%. "Inflation continues to decline but is still expected to remain too high for too long," said the ECB's Governing Council. Since the ECB's last hike on 15 June, the bank's governing council said that market developments had supported "the expectat...