The European Central Bank raises the key interest rate by 0.25 percent in July

The message from the central bank came on Thursday.

The war in Ukraine has led to rising energy and food prices, the ECB writes in a press release.

Higher inflation

Basic forecasts for inflation have therefore had to be revised.

According to the ECB, average inflation is 6.8 percent, which is higher than the forecast of 5.1 percent from March this year.

"The Governing Council expects to raise policy rates again in September.

The calibration of this interest rate hike will depend on the updated medium-term inflation outlook.

Should the inflation outlook remain or deteriorate, a larger surcharge is appropriate in September,

”the bank writes in the press release.

The two-percent target

The ECB continues to work towards returning inflation to its two% target for medium-term inflation.

"It's not just a step - it's a journey," said Christine Lagarde, President of the European Central Bank, on Thursday, according to Reuters.

The US Federal Reserve has also announced a rate hike this month and next, Reuters reports.

The Stockholm Stock Exchange declined markedly before the closing trade following the ECB's announcement.

The OMXS index fell 2.1 percent at 15 o'clock - a clear fall in connection with the ECB's speech after today's interest rate announcement, writes TT.