ECB raises rates for first time in 11 years to fight off runaway inflation

European stocks and bonds slumped and the euro rose after the European Central Bank raised rates by a larger-than-expected 50 bps

The European Central Bank raised interest rates by more than expected on Thursday as concerns about runaway inflation trumped growth considerations, even while the euro zone economy reels from the impact of Russia's war in Ukraine.

The ECB raised its benchmark deposit rate by 50 basis points to zero percent, breaking its own guidance for a 25 basis point move as it joined global peers in jacking up borrowing costs. It was the euro zone central bank's first rate hike for 11 years.

Policymakers also agreed to provide extra help for the 19-country currency bloc's more indebted nations - among them Italy