European Central Bank raised interest rates by 0.5 of a point
The European Central Bank raised interest rates by 0.5 of a point as concerns about runaway inflation trumped growth considerations. Its refinancing operations rate now stands at 0.5% and deposit rate at 0%. It indicated further hikes in coming months as euro are inflation rose to 8.6% in June. This was the ECB's first rate hike for 11 years. It also agreed on a new bond purchase scheme TPI intended to cap the rise in borrowing costs of more indebted nations, mainly Italy.
