European Central Bank Increses its interest rates to cope- up with Inflation
The European Central Bank has raised interest rates for the first time in more than a year to combat escalating inflation in the 15 countries that use the euro.
The bank said Thursday it is increasing its key rate by a quarter point to 4.25 percent.
Higher interest rates can help contain inflation but some worry the bank could slow economic growth by raising rates too much.Bank president Jean-Claude Trichet is expected to explain the decision when he meets with reporters later in the day.
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07-07-2008, 03:48 AM
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