The European Central Bank (ECB) has raised interest rates by a quarter of a percentage point to 3% in order to target inflation.
With inflation in the eurozone at 2.5% over the past three months, well above the bank’s 2% target, most analysts predicted the rise.
The ECB decided it had room to raise rates, as recent surveys had shown rising optimism among European firms.
The decision came after the Bank of England raised UK rates to 4.75%.
ECB raises interest rates to 3%