Europe’s central bank to hike rates in July, 1st in 11 years

AMSTERDAM (AP) — The European Central Bank will raise interest rates next month for the first time in 11 years, followed by another hike in September. The bank made the surprise announcement Thursday, saying inflation had become a “major challenge” and that those forces had “broadened and intensified.” The ECB is catching up with other central banks worldwide in pivoting from supporting the economy during the COVID-19 pandemic to squelching inflation. It also will end its economic stimulus program next month. The move underlines concerns about record levels of inflation in the 19 countries that use the euro.