The European Central Bank (ECB) announced a 0.25% raise on Thursday, bringing the eurozone's key interest rate to 3.75% in a bid to curb inflation.
The latest announcement slows the pace of rate hikes after the ECB had raised the key interest rate by 0.5% three consecutive times.
What did the ECB say?
Thursday's hike puts the ECB's deposit rate to 3.25%, which is its highest level since 2008.
The ECB's move follows a similar announcement by the US Federal Reserve on Wednesday, which also raised borrowing costs by 0.25% — and hinted that it could soon pause raising interest rates.
While the ECB is not expected to halt its cycle of interest rate hikes, the central bank did not include a commitment to future hikes in its statement — instead, saying it would take a "data-dependent approach."
"The inflation outlook continues to be too high for too long," the central bank said in a statement.
Inflation in the eurozone
The price of goods began soaring in the eurozone's 20 member states following Russia's invasion of Ukraine last year, and after Moscow began slashing gas deliveries to Europe.
The ECB has been aiming for medium-term price stability at an inflation rate of 2% — but this target has been overshot for months, DW reports.
