The European Central Bank (ECB) has raised interest rates again in its fight against inflation

Europe’s central bank has raised interest rates by 50 basis points to 4%, as policymakers try to bring inflation under control.<br><br>The ECB also said it had suspended its bond-buying programme - known as quantitative easing, a policy used during the 2008 and 2020 recessions.<br><br>“This decision reflects our unwavering commitment to price stability and our resolute determination to restore price stability.”<br><br>The ECB also said it had suspended its bond-buying programme - known as quantitative easing, a policy used during the 2008 and 2020 recessions.<br><br>It said that policymakers would keep a close eye on developments in inflation and stand ready to adjust its policy rates further if necessary, and extend or strengthen its toolkit if needed.<br><br>It also announced an end to its emergency bond-buying programme, a policy that propped up Italy and Greece during a debt crisis about a decade ago, and was revived in 2022 to deal with the worst bond rout in over a decade.<br><br>The central bank said policymakers would keep a close eye on developments in inflation and stand ready to adjust its policy rates further if necessary, and extend or strengthen its toolkit if needed.<br><br>Inflation rose to 6.5% in the euro zone, according to official figures, up from 6.1% last month. <br><br>However, predictions for inflation in 2024 are rosier, with it forecast to fall to 3% next year and then drop to 2% in 2025.