ECB raises interest rates to combat inflation despite slowing growth
The European Central Bank (ECB) raised its key interest rates from 2% to 2.25% on Thursday, June 11, aiming to curb inflation and prevent a resurgence of price increases, recalling the significant inflation rates experienced in 2022.
The European Central Bank (ECB) increased its benchmark interest rates from 2% to 2.25% on Thursday, June 11, in a move designed to combat persistent inflation. The decision aims to prevent a renewed surge in prices, drawing lessons from the period in 2022 when inflation surpassed 10%. ECB President Christine Lagarde underscored the importance of the action, stating that "the main risk would be not taking this kind of decision." This rate hike occurs amidst a backdrop of decelerating economic growth within the Eurozone, highlighting the central bank's primary focus on achieving price stability and bringing inflation back towards its target. Sources: Le Monde — International.