ECB increases key interest rate by 0.5 percentage points

The European Central Bank (ECB) will raise interest rates by 0.5 percentage points, as announced on Thursday. The key interest rate is therefore 2.5 percent.

The ECB has already raised interest rates several times this year in order to counteract the rapidly rising inflation. This appears to be having an effect: In the euro zone, inflation has fallen from its record level in November to just 10.0 percent.

The ECB is following the Swiss National Bank (SNB) with its rate hike. This had raised interest rates by 0.5 percentage points on Thursday morning. The key interest rate in Switzerland is currently 1.00 percent. In this country, inflation is also much lower. In November, inflation remained unchanged compared to the previous month at 3.0 percent.