ECB Raises Rates by 0.75 Point to Highest in More Than a Decade
European Central Bank to limit payments to lenders, a move that is expected to raise borrowing costs for companies
FRANKFURT—The European Central Bank raised interest rates by three-quarters of a percentage point for the second time in a row Thursday, but signaled mounting concerns about economic growth, prompting investors to bet that the bank will soon reduce the scale of its rate hikes.
The bank said in a statement that it would increase its policy rate to 1.5%, the highest level in more than a decade. It also moved to limit payments it makes to eurozone banks that tapped its ultracheap loans during the Covid-19 pandemic, a move that is ultimately expected to raise borrowing costs for eurozone companies.