ECB raises interest rates for the ninth time in a row

The European Central Bank raised interest rates for the ninth consecutive time today, by 25 basis points, to 3.75%, the highest level since 2000, but raised the possibility of them stalling in September as inflation pressures showed initial signs of abating and recession fears mounted.

The European Central Bank has now raised borrowing costs by 425 basis points since last July in the fight against the historic rally in prices, fearing that price growth will be sustained by rising costs and wages in an exceptionally tight jobs market. European Central Bank President Christine Lagarde said that while headline inflation has halved since October, core price growth is hovering near historic highs and may have accelerated this month.