The European Central Bank (ECB) has announced a new jumbo hike of interest rates in a bid to bring down record inflation in the eurozone.

The bank’s three key interest rates were each bumped by three-quarters of a percentage point, the same as they did in September.

The central bank’s interest rates have a cascading effect across the eurozone and directly influence the rates that commercial banks offer to households and businesses.

Mortgages, car loans and credit cards will become more expensive and less attractive as a result.

Governments will have to make higher payments for their national debt, worsening their public deficits.

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