ECB raises interest rates again

STORY: The European Central Bank raised interest rates again on Thursday...

hiking its deposit rate by a further 75 basis points to 1.5%.

That's the highest rate in more than a decade.

And ECB President Christine Lagarde warned the end is not in sight just yet.

“Have we finished the normalization of our monetary policy as we have called it? No. There is still ground to cover."

The ECB also signaled it was keen to shrink its bloated 8.8 trillion euro balance sheet...

adding that "substantial" progress had been made in fighting off a historic surge in inflation.

The central bank for the 19 countries that use the euro is worried that rapid price growth is becoming entrenched.

It's been raising borrowing costs at the fastest pace on record.

Investors now see rates peaking at around 2.6% next year, below previous expectations for close to 3%.

The euro and bond yields dropped on the news, while bank shares rose.

In Berlin, the German finance minister applauded the move.

"I welcome the fact that the ECB is fighting inflation very resolutely," Christian Lindner said.

The ECB also curbed a key subsidy it provides to commercial banks through trillions of euros' worth of ultra-cheap three-year loans called Targeted Longer-Term Refinancing Operations.

The move will boost borrowing costs over the remaining lifetime of the facility, providing lenders an incentive to repay them early.

As for criticism that the hikes would send the euro zone into recession, Lagarde pushed back.

Euro zone inflation is currently just under 10 percent...

and Lagarde says it's her job to get that under control.