Frankfurt, 21 July 2022 (dpa/MIA) - The European Central Bank has raised interest rates for the first time in 11 years in hopes of taming record high inflation. The ECB announced it was hiking its benchmark deposit rate by 0.5 percentage points, double the quarter-point rise that analysts had expected. The Frankfurt-based bank said the move would strengthen "the anchoring of inflation expectations" and ensure that "demand conditions adjust to deliver its inflation target in the medium term." Consumer price growth is reaching double-digit territory in the eurozone as European economies suffer from the fallout of Russia's war in Ukraine, which is now almost five months old. The currency area's annual inflation stood at 8.6% in June. The euro's recent drop to a two-decade low against the dollar has compounded inflation fears. The ECB considers that price stability is best maintained by aiming for 2% inflation over the medium term. It predicted further rate hikes as soon as September, when it holds its next meeting. "Further normalization of interest rates will be appropriate," the statement said. The bank said it had also approved a new crisis measure called Transmission Protection Instrument in order to "ensure that the monetary policy stance is transmitted smoothly across all euro area countries." The ECB's rate decision follows similar moves by central banks in the US, Britain and elsewhere as they scramble to beat back runaway inflation. While such moves are likely to tap the brake on rising prices, they may also dampen growth.