European Central Bank Raises Interest Rates—Here’s What to Know

The European Central Bank has raised key interest rates by a quarter point because inflation remains above its 2 percent target. This decision was influenced by both upside inflation risks and downside threats to economic growth. It is the second rate hike since June and could influence other central banks worldwide to follow suit.

• The European Central Bank (ECB) raised three key interest rates by a quarter point.
• Inflation remains above the ECB’s 2 percent target.
• The decision was influenced by inflation risks and threats to economic growth.
• This is the second rate hike by the ECB since June.
• Global financial markets are closely watching the ECB’s actions, which may prompt other central banks to raise rates.