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ECB Rushes To Tighten As Half-Point Hike Matched By Crisis Tool
The European Central Bank raised its key interest rate by 50 basis points, first increase in 11 years and the biggest since 2000.
21 Jul 2022, 05:56 PM IST 
The empty stage ahead of the arrival of European Central Bank (ECB) President Christine Lagard for the rate decision news conference in Frankfurt, Germany, on July 21. Photographer: Alex Kraus/Bloomberg
(Bloomberg) -- The European Central Bank raised its key interest rate by 50 basis points, the first increase in 11 years and the biggest since 2000 as it confronts surging inflation even as recession risks mount.
With Italy enduring a fresh bout of political turmoil, President Christine Lagarde and colleagues also unveiled a tool they hope will ensure markets don’t push up borrowing costs too aggressively in vulnerable economies, as happened in 2012 when the euro’s very existence was questioned.
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