The European Central Bank raised interest rates by 50bps, in line with economists' expectations.

This puts interest rates at 2.5%, the highest level since the global financial crisis.

The ECB's move matched the Bank of England's rate hike on the same day, and both were greater than the US' 0.25% increase.

Bank of England meets expectations with 0.5 percentage point hike

This is expected to be the first of two interest rate hikes in Q1 this year from the ECB, with the next predicted for March, which the central bank indicated would be the same size.

Seema Shah, global chief strategist at Principal Asset Management, said the ECB had taken the idea of data dependency to another level, by already committing to this spring time increase.

She wondered if the ECB may regret not giving itself a bit more flexibility come March since "with several weeks until the next meeting, a whole host of economic data to dissect between now and then", and a new set of forecasts could show a different picture.

At present, Eurozone inflation is stuck at record highs, as Richard Carter head of fixed interest research at Quilter Cheviot said the recent falls in energy prices have not been enough to dampen inflation while the war in Ukraine persists.

Still, the economy is widely forecast to be emerging gradually from its slowdown, Shah said.