At 50 basis points, European Central Bank's rate hike higher than expected

Euro zone central bank's first rate hike in 11 years confirms that concerns about runaway inflation now trump growth considerations

The euro, government bonds yields and bank shares in the single currency bloc rose on Thursday after the European Central Bank delivered a big 50 basis point rate hike to tame inflation in its first rate increase since 2011.

The ECB raised its benchmark deposit rate to zero percent, breaking its own guidance for a 25 basis point move as it joined global peers in jacking up borrowing costs and ending an eight-year experiment with negative interest rates.

The euro climbed to $1.0268, about 0.7 per cent higher than the $1.0198 it was trading at ahead of the ECB’s statement.

By 1312 GMT