LONDON—The European Central Bank raised interest rates for the eighth successive time, as expected, on Thursday and signalled further policy tightening, as it battles high inflation.
The central bank for the 20 countries that share the euro also said it expected inflation to stay above its 2 percent target through 2025 and hinted once again at more rate hikes in the coming months.
Market Reaction:
STOCKS: European stocks were down 0.6 percent on the day, compared with a 0.4 percent drop just before the ECB decision.
BONDS: Government bond yields retreated from the day’s highs, Germany’s two-year yield last up around 9 basis points at around 3.135 percent, versus 3.15 percent just before the rate decision….