Europe Hikes Interest Rates to Curb Inflation

Central bank's quarter- point increase to 4.25% is first move in a year
By Jason Farago,  Newser Staff
Posted Jul 3, 2008 8:29 AM CDT
Jean-Claude Trichet, President of the European Central Bank ECB is seen during a news conference in Frankfurt, central Germany, on Thursday, June 5, 2008.    (AP Photo/Daniel Roland)
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(Newser) – The European Central Bank today adjusted interest rates for the first time in more than a year, reports MarketWatch, raising the main rate by a quarter-point to 4.25%. The increase comes just after a report that inflation in the eurozone has reached 4%, the highest rate since the introduction of the euro in 1999. The move was expected, and the euro remained strong, hovering at around $1.58.