Economy

ECB set to raise interest rates to 4.25% as core inflation remains sticky across Europe

The ECB is set to increase its main interest rate by a further 0.25 per cent when its governing council meets in Frankfurt today

Christine Lagarde, president of the ECB

The European Central Bank (ECB) is set to hike interest rates once again when its Governing Council meets in Frankfurt later today. Markets are forecasting the regulator will increase its main interest rate by a further 0.25 per cent, which will bring its main lending rate to 4.25 per cent – its highest level in more than 20 years.

This will be the ninth time in the last 12 months that the ECB has lifted ...