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European stocks close lower after central bank rate hikes

Central banks continue aggressive rate hiking cycle to tame record inflation

European stocks closed lower Thursday as central banks continue to raise interest rates in an aggressive rate hiking cycle to tame record inflation.

The STOXX Europe 600, which includes around 90% of the market capitalization of the European market in 17 countries, fell 10 points, or 2.47%, to finish at 402.88.

The UK’s FTSE decreased 228 points, or 3.1%, to end at 7,045.

The Bank of England (BoE) earlier Thursday raised rates 25 basis points, carrying its interest rate to 1.25%, from 1%.

It marked the fifth straight rate hike for the BoE, which said it estimates consumer inflation to average slightly more than 10% when its peaks in the fourth quarter of this year.

Germany’s DAX 30 declined 446 points, or 3.3%, to 13,038. France’s CAC 40 fell 143 points,or 2.4%, to 5,886.

Italy’s FTSE MIB was the worst performer of the day, plummeting 747 points, or 3.3%, to end at 21,726.

Spain’s IBEX 35 fell 96 points, or 1.2%, to close at 8,078.

The Swiss National Bank also had a rate hike of 50 basis points, carrying its interest rate to -0.25%, from -0.75%.

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