ECB hikes int rates by 25bps to 2.75%

The European Central Bank (ECB) today raised its main refinancing rate by 25 basis points to 2.75%.

The ECB's decision to raise rates to a three-year high had been expected because of the pickup in the eurozone. Some analysts had expected it could boost rates by half-a-percentage point.

Inflation has been accelerating above the ECB's target, economic growth is near its long-term trend and retail sales are growing.