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

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%.