The latest move completes a full year of consecutive rate hikes in the euro zone, after the ECB embarked on its journey to tackle high inflation last July.
“Inflation continues to decline but is still expected to remain too high for too long,” the ECB said Thursday in a statement.
A headline inflation reading showed the rate coming down to 5.5% in June from 6.1% in May — still far above the ECB’s target of 2%. Fresh inflation data out of the euro zone is due out next week.
While market players had expected the 25 basis point hike, a lot of anticipation remains about the ECB’s post-summer approach. Inflation has eased, but questions linger about whether monetary policy is pushing the region into an economic recession.
The central bank did not share any forward guidance about upcoming moves.
