The European Central Bank officials decided to raise the monetary policy interest rate by 0.25 points up to 4.25% in order to control inflation, a press release of the institution informs. According to the press release, ECB decided to rise the interest rate of the marginal credit by 25 points to 5.25%, the interest rate for deposits by 25 points up to 3.25% starting July 9, 2008.
ECB is the first G7 central bank to rise the interest rate since the credit crisis wave in August last year. According to Reuters, investors are anxious to hear official declarations.
ECB head Jean Claude Trichet explained on Thursday that the institution made the decision to increase its key interest in order to keep inflation under control. He said the ECB's main focus was the stability of prices in the euro zone as inflation remains under pressure.