ECB raises rates to 22-year high even as economy stutters

for months, courtesy of lower energy prices and the steepest increase in interest rates in the ECB's 25-year history.

But inflation in the euro zone is still unacceptably high for the ECB at 6.1% and underlying price growth, which typically excludes food and energy, is only starting to slow. That was set to keep the ECB on the tightening path, particularly after it failed to predict the current bout of high inflation and began raising rates later than many global peers last year.

While moves beyond July are less certain, ECB President Christine Lagarde is expected to keep a further hike in September in play and to push back against investor bets that the central bank will cut rates early next year.The ECB raised its inflation forecasts for this year, the next and 2025, when it was still expected to remain above the central bank's target, at 2.2%

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Source: CNBC - 🏆 12. / 72 Read more »