European countries are going through a lot of trouble with inflation in today’s time.  Let us tell you that once again the European Central Bank has increased its interest rate by 0.75%.

There are about 19 countries in the Euro zone and the European Central Bank acts as the central bank for all of them.  In Europe, inflation has reached its highest level in several decades.  In such a situation, despite the threat of recession, the European Central Bank has decided to raise interest rates to rein in inflation.

The prime interest rate of the European Central Bank has now increased to 2.25%, from 1.5% so far.  This is the third time since July that the European Central Bank has raised interest rates.  Apart from Europe, many countries of the world including America and India have increased interest rates in the last few months to curb inflation.