BRUSSELS, Dec. 1 (UPI) -- The European Central Bank raised a key interest rate Thursday, as expected, by 0.25 percent to 2.25 percent.
The increased interest rate, which had not been raised since 2000, on the main refinancing operations takes effect Tuesday, the ECB said.
The bank also raised two associated interest rates. The interest rate on the marginal lending facility will rise Tuesday by 0.25 percentage point to 3.25 percent, and the interest rate on the deposit facility will be increased Tuesday by 0.25 percentage point to 1.25 percent.
The ECB's head signaled several weeks ago that the bank would increase key interest rates in response to growing signs of inflation, BBC said Thursday.
Jean-Claude Trichet said that even with Thursday's increase, interest rates were "accommodative" and consistent with anchoring inflation expectations.
He also said the eurozone economy would be underpinned by improving global demand for exports, stronger consumer spending and wage growth, and domestic investment by companies.
Finally, Trichet said that the ECB expected eurozone economic growth of between 1.2 percent and 1.6 percent this year, and between 1.4 percent and 2.4 percent in 2006.
