Eurozone interest rates have been hiked to a record high by the European Central Bank (ECB).
The bank raised its key rate for the 10th time in a row, to 4% from 3.75%, as it warned inflation was “expected to remain too high for too long”.
The latest increase came after forecasts predicted inflation, which is the rate prices rise at, would be 5.6% on average in 2023.
But the ECB signalled that Thursday’s hike could be the last for now.
“The governing council considers that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target,” the bank said.