The European Central Bank (ECB) has raised its benchmark interest rates by 0.25%, the highest level since May 2001, in an effort to combat rising consumer prices. ECB President Christine Lagarde hinted at further rate increases in the future. Central banks globally have been raising borrowing costs to tackle inflation caused by higher energy prices and supply chain disruptions. The US Federal Reserve also recently raised its key rate. Inflation in the eurozone remains high, at 5.5% in June, with households and businesses facing the impact of price spikes and higher rates. Germany's economy is particularly at risk of recession.

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