ECB Lifts Interest Rates to 22-year Highs

The skyline with the banking district and the headquarters of the European Central Bank (ECB) are photographed in Frankfurt, Germany, on Oct. 4, 2021. Kai Pfaffenbach/Reuters

LONDON—The European Central Bank raised interest rates for the eighth successive time, as expected, on Thursday and signalled further policy tightening, as it battles high inflation.

The central bank for the 20 countries that share the euro also said it expected inflation to stay above its 2 percent target through 2025 and hinted once again at more rate hikes in the coming months.

Market Reaction:

STOCKS: European stocks were down 0.6 percent on the day, compared with a 0.4 percent drop just before the ECB decision.