European Central Bank increases rates by 75 basis points

The change follows a reduction from -0.5% to zero at the July meeting.

In an effort to boost spending and fight low inflation, the central bank, which determines monetary policy for the 19 countries that use the euro, has kept rates in the negative territory since 2014.

The benchmark deposit rate at the European Central Bank increased by 75 basis points to 0.75 percent on Thursday.

It increased its forecast for inflation and now expects an average of 8.1% in 2022, 5.5% in 2023, and 2.3% in 2024.

The euro held steady against the British pound and increased marginally against the dollar to 1.0005 as markets had largely priced in a 75 basis point increase.

In an effort to boost spending and fight low inflation, the central bank, which determines monetary policy for the 19 countries that use the euro, has kept rates in the negative territory since 2014.

With consumer prices in the euro zone rising by 9.1% in August, setting a ninth straight record, it now faces a very different issue.

Although the euro zone's gross domestic product rose by 0.8% in the second quarter, many analysts believe that a recession will soon hit the region.

According to ECB President Christine Lagarde, the Governing Council of the institution unanimously decided to raise its three key interest rates.

Lagarde stated that the bank continued to be data-dependent meeting after meeting and that since its previous gathering in July, it had evaluated inflation rates and growth forecasts.

Wall Street recovers from a 3 week losing streak

Indexes up: Dow 0.17%, S&P 0.21%, Nasdaq 0.34%