ECB Hikes Interest Rates Amid Persistent European Inflation
The European Central Bank (ECB) raised interest rates for the second time this year by 0.25 percentage points to 2.50% on Thursday.
ECB President Christine Lagarde said that above-target inflation 'will be longer-lasting than we had anticipated.'
Inflation in Europe has been heating up, reaching a three-year-high of 3.3% in August, and the ECB is concerned about its persistence.
The rate hike sent government bond-market borrowing costs to their highest levels since 2011 for Germany and 2008 for France.