ECB and BoE Raise Rates by 50bps to Bring Inflation Down to Target

The European Central Bank and Bank of England raised interest rates by 50 basis points on Thursday as it seeks to slow inflation and expects more to come next year.

After the U.S. Federal Reserve hiked its rates on Wednesday, and several central banks followed suit. Central banks in Switzerland, Hong Kong, and the Philippines made attempts to slow down inflation, including the European Central Bank (ECB) and the Bank of England (BOE).

The European Central Bank raised interest rates by 50 basis points, bringing its benchmark to 2.5%, which is the highest level since the 2008 financial crisis.

The ECB’s Christine Lagarde said that despite progress in recent months, she still thinks high interest rates would hang in there for a while.

The Bank of England also raised its key interest rate by another 50 basis points to 3.5% from 3%, its ninth time in a row as it looks to slow down 41-year high inflation rates.