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ECB Raises Interest Rate by Half Percentage Point
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Europe’s major central banks raised their key interest rates by 0.5 percentage point but diverged from the Federal Reserve and each other on their likely next moves, reflecting economic uncertainty amid uneven growth and inflation in the region and the rapid reopening of China’s economy.
The European Central Bank on Thursday raised its key rate to 2.5%, its fifth large increase in a row, and signaled it would enact another half-point rate increase in March. That leaves the ECB some way behind the Fed, which raised rates to 4.5% to 4.75% on Wednesday, and the Bank of England, which increased rates by a half percentage point to 4% earlier Thursday.
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