>
ECB doubles interest rate to curb inflation: Central bank for 19 euro-using countries raises interest rate by another 0.75 percentage point to 1.5%
<!–
<!–
<!–<!–
<!–
<!–
<!–
The European Central Bank doubled interest rates in its fight against inflation.
The central bank of the 19 countries that use the euro raised interest rates by another 0.75 percentage point to 1.5 percent — the highest level since 2009.
For eight years, up to July, ECB interest rates were negative, below 0 percent, in a desperate attempt to spur economic growth.
Under pressure: ‘We have to do what we have to do,’ said ECB President Christine Lagarde
But with inflation soaring – now running at 9.9 percent across the bloc – the ECB has changed course.
“We have to do what we have to do,” said ECB President Christine Lagarde. “Everyone has to do their job. Our job is price stability. A central bank must focus on its mandate.’
The ECB also announced that it would change the terms of its ultra-cheap loans to commercial banks to strip them of crisis-era support.
The moves are putting pressure on the Bank of England ahead of next week’s interest rate meeting.
The Bank is expected to raise interest rates by 0.75 percentage point to 3 percent, which would be the largest increase since Black Wednesday in 1992.