European Central Bank hikes interest rates, fuelling recession fears

One analyst described the recent rate hikes by the ECB as the ‘sharpest and most aggressive hiking cycle ever’. Photograph: Arne Dedert/AP

The European Central Bank has increased the cost of borrowing to tackle inflation, which soared across the eurozone last month to 9.9%.

Matching financial market expectations, the ECB’s 25-member governing council raised the deposit rate by three-quarters of a point to 1.5% – the joint fastest rise in the eurozone’s history.