The European Central Bank (ECB) has raised interest rates for the first time in more than 11 years as it tries to control soaring eurozone inflation, the BBC reports.
The ECB increased its key interest rate by 0.5 percentage points to 0.0% and plans further increases this year.
The rate has been negative since 2014 in a bid to boost the bloc’s economies after years of weak growth.
But inflation – the rate at which prices rise – is now at a record 8.6% as food, fuel and energy costs soar.
That is well above the bank’s 2% target.
Explaining its decision, ECB president Christine Lagarde said: “Economic activity [in the eurozone] is slowing. Russia’s unjustified aggression towards Ukraine is an ongoing drag on growth.”
