Alexa
  • Directory of Taiwan

ECB raises its key interest rate to 3.5 percent

ECB raises its key interest rate to 3.5 percent

The European Central Bank raised its key interest rate a quarter of a percentage point to 3.5 percent on Thursday, but a strong euro meant the bank could pause its string of rate hikes next year.
With the euro hovering around 20-month highs against the U.S. dollar, the ECB may feel pressure to back off future increases for fear of seeing the common currency rise so high it stunts growth in the euro zone, which accounts for nearly 15 percent of the global economy. Markets will be looking for hints about the bank's path from President Jean-Claude Trichet.