European Central Bank increases interest rates by 0.75%

Part of a series of hikes attempting to reduce soaring inflation

Christine Lagarde, President of the European Central Bank. The bank has a target of 2% inflation.

The European Central Bank has taken its most significant step yet to address historic levels of inflation as it raised interest rates by 75 basis points yesterday, its largest ever single increase.

The move brings the ECB's deposit rate to 0.75% from zero and raised the main refinancing rate to 1.25%, their highest level since 2011. The increase was widely expected and is part of a series of hikes that are planned as the central bank attempts to contain soaring inflation which has reached a half-century high of more than 9%.