The rate was increased by the European Central Bank by 0.5 percent

The ECB decided to hike rates for the first time since 2011 in a historic move. and by a step of 0.5 percent directly over the prediction. The ECB will soon raise interest rates, bringing it closer to the more than 80 other central banks that have already done so this year. It still trails behind the Fed, though.

The ECB official added that more rate increases are appropriate. The ECB also authorized a fresh method for purchasing TPI bonds at the same time. It is required to stop fragmentation, or the rise in the yield on Italian and Greek bonds. Italy’s benchmark index dropped 2.2 percent this morning, the 10-year bond rate increased 21 basis points to 3.6 percent, and the index of Italian firms sank 3.5 percent. As previously reported by sources, the ECB will most likely transfer funds from redeemed bonds to purchase bonds in Italy.

The ECB came up with an intriguing strategy: increase money printing to combat inflation and the recession.