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European Central Bank has also started raising interest rates.

The reason for the increase is because of rising prices.

They announced that they would raise the base rate from next month and raise the base rate even more in September, but the European Central Bank raised the base rate for the first time in 11 years.



Reporter Ki-tae Kim reports.



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European Central Bank (ECB) held a monetary policy meeting and announced that it would raise the key interest rate by 0.25 percentage points at its July meeting.



He also predicted that there would be a larger increase in September.



[Christine Lagarde/President of the European Central Bank: Looking a little further ahead, we expect the European Central Bank to raise its key rate further in September.]



In March 2016, the European Central Bank raised its key rate to 0%. After lowering it to , it has maintained it until now, but it is the first time in 11 years to raise the base rate.



The European Central Bank also raised its inflation forecast to 6.8% this year, 3.5% next year, and 2.1% in 2024.



He also predicted that "energy and food prices have risen significantly due to the effects of war," and that "inflation will remain at a high level for a considerable period of time."



[Christine Lagarde/President of the European Central Bank: High inflation is a major challenge for all of us.

Inflation will return to its target of 2% in the medium term.]



The World Bank also drastically downgraded its global economic growth forecast for this year to 2.9% from the previous 4.1% in a recently released report, warning of the possibility of stagflation, which means rising prices amid an economic downturn.