The European Central Bank raised the key rate by 50 basis points, from 2% to 2.5%. This is the highest level in more than a decade, since January 2009, writes RBC.

In a press release, the ECB said it plans to raise rates at subsequent meetings, and the decision will depend on the outlook for inflation and the economy. The regulator believes that interest rates will still need to rise at a steady pace to reach levels that will ensure “a timely return of inflation to the medium-term target of 2%.”

“Inflation remains too high and will remain above target for an extended period,” the ECB said in a statement.

The Governing Council “expects interest rates to rise further.”