European Central Bank and Bank of England raise interest rates to combat inflation

The U.S. Federal Reserve raised interest rates the previous day.

Updated: December 15, 2022 - 9:00am

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The European Central Bank on Thursday raised interest rates for the fourth consecutive time while the Bank of England raised interest rates for the ninth time in a row as Europe battles inflation.

The European Central Bank, which oversees 19 countries using the euro, raised its interest rate on bank deposits from 1.5% to 2%, Reuters reported. The increase is less than previous ones, with indications that inflation is peaking.

The Bank of England on Thursday raised its key interest rate from 3% to 3.5%, the wire service also reported. Inflation in the U.K. fell to 10.7% in November from 11.1% in October.

Inflation remains high in the United States, at 7.1% last month. The Federal Reserve on Wednesday announced an interest rate increase of 0.5%.