The European Central Bank raises its benchmark rate by 0.25 - its highest level since May 2001
The European Central Bank has raised interest rates back to their record high, warning consumer prices are still rising too fast while keeping its options open for further increases.
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00:00 The European Central Bank has raised its key interest rate by a quarter percent amid persistent
00:07 concerns about inflation and possible further recession in the Eurozone.
00:12 Inflation has fallen steadily since a peak of more than 10 percent last October, but
00:16 it remains above the ECB's 2 percent target.
00:21 Upside risks to inflation include potential renewed upward pressures on the costs of energy
00:28 and food, also related to Russia's unilateral withdrawal from the Black Sea Grain Initiative.
00:36 Adverse weather conditions, in light of the unfolding climate crisis, may push up food
00:42 prices by more than projected.
00:46 The ECB's previous rate hikes are slowly working their way into the economy, cooling house
00:51 price rises and business loans, but core inflation, which strips out volatile fuel and food prices,
00:57 remains high.
00:58 The ECB has left the door open to a further rate hike in September, even though that increases
01:03 the risk of a Eurozone recession.
01:05 (whooshing)