European Central Bank Ups Key Rate
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FRANKFURT, Germany (AP) – The European Central Bank raised its benchmark rate by a quarter of a percentage point to 4 percent on Wednesday, as the economy of the region that shares the euro as its currency grows at a healthy pace.
The increase in the cost of borrowing – the eighth such move since December 2005 – had been expected.
But with the key interest rate now at its highest point since August 2001 and inflation within the ECB guidelines, markets and analysts will be seeking guidance about what comes next.
