European Central Bank Raises Interest Rate to Highest Level in 22 Years

The European Central Bank raised interest rates today, Thursday, to the highest level in 22 years, keeping the door open for further increases as it continues its battle to curb inflation despite a downturn in the eurozone economy. The bank raised the key interest rate for the eighth consecutive time by 25 basis points to 3.5%, the highest level since 2001. The central bank stated, "It expects inflation to remain above the 2% target until 2025," and hinted again at more interest rate increases in the coming months. It added, "Future decisions will ensure that the European Central Bank's key interest rates reach restrictive levels, sufficient to bring inflation back to the medium-term target of 2% in a timely manner, and to remain at those levels as long as necessary."