ECB raises charges for the primary time in 11 years

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CayamnMamaNews
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European Central Bank tries to ease fears of debt crisis after bond 'panic'

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That marks the first time since 2011 that the ECB has raised rates, and takes Europe’s main rate back to zero. Rates in the region have been negative since 2014.

The move, which takes effect on July 27, comes as Europe battles record inflation fed by surging energy prices. Annual inflation in the European Union jumped to 9.6% in June. It reached 8.6% for the 19 countries that use the euro.

The central bank had previously indicated that it would increase rates by a smaller margin, but decided it needed to be more aggressive based on an “updated assessment of inflation risk.”

“Inflation continues to be undesirably high and is expected to stay above our target for some time,” ECB President Christine Lagarde said at a press conference.

The central bank declined to commit to a definitive trajectory for rate hikes moving forward, seeking to keep its options open.

“From now on we will make our monetary policy decisions on a data-dependent basis,” Lagarde said. “We will operate month-by-month…

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