Central Eurpoean bank raises interest rate to 1.25%

The European Central Bank (ECB) today raised interest rates in the euro-zone for the first time since July 2008, at a quarter point to 1.25%, to curb inflationary pressures. It has also increased by the same amount the marginal lending facility, which lends money to banks, to 2%. The Bank of England kept interest rates at 0.5%. The annual inflation rate of the euro-area rose two-tenths in March to 2.6%, the highest since October 2008. It is the fourth consecutive month that inflation has risen in the euro area.