ECB raises lending rates

FRANKFURT, Germany, July 3 (UPI) -- The European Central Bank said Thursday it would raise its key lending rates to 4.25 percent to combat inflation in the Eurozone.

It is the bank's first rate hike in more than a year, The Wall Street Journal reported.

The bank said the hike of 25 basis points would go into effect July 9. It would also apply a quarter of a percentage point raise to its marginal lending facility, raising that rate to 5.25 percent, and its deposit facility, raising that rate to 3.25 percent.

European Central Bank President Jean-Claude Trichet was to meet with the media Thursday to explain the Governing Council's decisions, a statement said.

Trichet signaled the rate hike was possible a month ago. "It is our strong determination to secure a firm anchoring of medium and long-term inflation expectations in line with price stability," he said in June.