Investing.com – The European Central Bank raised its benchmark interest rate for the second time in 2011, it announced on Thursday.
The ECB said it lifted the benchmark interest rate to 1.5%, in a widely expected move, up from 1.25%, where it remained unchanged since April, when the bank raised rates for the first time in 22 months.
ECB president Jean-Claude Trichet was to comment on the decision at a press conference later in the day, where markets will be looking to see if future rate hikes are signaled.
Following the announcement, the euro was down against the U.S. dollar, with EUR/USD shedding 0.26% to trade at 1.4282.
Meanwhile, European stock markets were higher. The EURO STOXX 50 gained 0.45%, France’s CAC 40 was up 0.5%, Germany's DAX rose 0.4%, while the FTSE 100 advanced 0.45%.
The ECB said it lifted the benchmark interest rate to 1.5%, in a widely expected move, up from 1.25%, where it remained unchanged since April, when the bank raised rates for the first time in 22 months.
ECB president Jean-Claude Trichet was to comment on the decision at a press conference later in the day, where markets will be looking to see if future rate hikes are signaled.
Following the announcement, the euro was down against the U.S. dollar, with EUR/USD shedding 0.26% to trade at 1.4282.
Meanwhile, European stock markets were higher. The EURO STOXX 50 gained 0.45%, France’s CAC 40 was up 0.5%, Germany's DAX rose 0.4%, while the FTSE 100 advanced 0.45%.