Brussels: Europe and the Arabs
The European Central Bank announced Thursday that it will raise the three main interest rates by 25 basis points from August 2. This was the ninth consecutive increase and the third by 0.25 basis points respectively, after May and June. The refinancing rate, which banks pay to borrow money from the European Central Bank, will rise to 4.25 percent, the Brussels-based news agency reported. The deposit rate, the interest rate banks get when they store excess money in the European Central Bank, rises to 3.75 percent. The interest rate on the ECB's short-term loans to banks is now 4.5 percent.

"Future decisions will ensure that key ECB interest rates are set at sufficient restrictive levels for as long as necessary, to achieve a timely return of inflation to the 2% medium-term target," the ECB said in its statement.

Further price hikes are possible
Experts are unsure if this will be the last ECB rate hike. Inflation is coming down very slowly and there is still a risk of recession, which is why some policy makers at the European Central Bank want to increase interest rates in the coming months.

"I think rates needed to be raised last July. But when and how much depends on the data," Martins Kazak, ECB policymaker, said last month.