The European Central Bank has raised interest rates back to their record high, warning consumer prices are still rising too fast while keeping its options open for further increases.
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00:00 The European Central Bank has raised its key interest rate by a quarter percent amid persistent
00:07 concerns about inflation and possible further recession in the Eurozone.
00:12 Inflation has fallen steadily since a peak of more than 10 percent last October, but
00:16 it remains above the ECB's 2 percent target.
00:21 Upside risks to inflation include potential renewed upward pressures on the costs of energy
00:28 and food, also related to Russia's unilateral withdrawal from the Black Sea Grain Initiative.
00:36 Adverse weather conditions, in light of the unfolding climate crisis, may push up food
00:42 prices by more than projected.
00:46 The ECB's previous rate hikes are slowly working their way into the economy, cooling house
00:51 price rises and business loans, but core inflation, which strips out volatile fuel and food prices,
00:57 remains high.
00:58 The ECB has left the door open to a further rate hike in September, even though that increases
01:03 the risk of a Eurozone recession.
01:05 (whooshing)