"ECB Raises Rates by 25 Basis Points, Signals Data-Driven Approach"

The European Central Bank has raised interest rates by a quarter percentage point, completing a year of consecutive rate hikes in an effort to tackle high inflation. Despite a decline in inflation, it is still expected to remain above the ECB's target of 2%. The central bank did not provide any forward guidance on future moves, leaving uncertainty about the post-summer approach. Euro zone business activity data suggests declines in Germany and France, increasing the chances of a recession in the region. The IMF predicts the euro zone will grow by 0.9% this year, but factors in a recession in Germany.