Frankfurt, Dec 16 (TIWN) The European Central Bank (ECB) has raised its key interest rates by 50 basis points (bps) and explicitly committed to further hikes to tame rampant inflation in the eurozone.

The European Central Bank (ECB) has explained its economic policy in its war against inflation. The governing council of the body decided to hike the interest rates on its main refinancing operations, its marginal lending facility, and its deposit facility by 50 basis points (bps) across the board. In a press release, the organization explained that this rise is part of a plan to ensure a “timely return” to the 2% levels of inflation formerly faced by the bloc.  This hike is similar to the one applied by the U.S. Federal Reserve on Dec 14, when it also hiked its interest rates by 50bps.  Inflation levels are still far from reaching the 2% target, as numbers estimate that inflation reached 10% during November. However, this shows an improvement over October’s numbers, which were estimated to reach 10.6%.  The ECB hinted at similar interest hikes in the future, stating it “expects to raise them significantly further, because inflation remains far too high and is projected to stay above the target for too long.”