European Central Bank Raises Rates By 50 Basis Points, Its First Hike in 11 Years

The European Central Bank on Thursday increased interest rates for the first time in 11 years in an attempt to cool rampant inflation in the euro zone.

The ECB, the central bank of the 19 nations that share the euro currency, pushed benchmark rates up by 50 basis points, bringing its deposit rate to 0%. The Frankfurt institution had kept rates at historic lows, in negative territory since 2014, as it dealt with the region's sovereign debt crisis and the coronavirus pandemic.

"The Governing Council judged that it is appropriate to take a larger first step on its policy rate normalisation path than signalled at its previous meeting," the ECB said in a statement.