Inflation is being turbocharged by runaway energy prices, which have soared since Russia’s invasion of Ukraine in February.
The move follows a move from -0.5% to zero at its July meeting.
The central bank, which sets monetary policy for the 19 euro-using nations, has kept rates in negative territory since 2014 in a bid to spur spending and combat low inflation. The European Central Bank on Thursday announced a 75 basis point interest rate rise, taking its benchmark deposit rate to 0.75%.
"This major step frontloads the transition from the prevailing highly accommodative level of policy rates towards levels that will ensure the timely return of inflation to the ECB's 2% medium-term target," it said in a statement. It added it"expects to raise interest rates further, because inflation remains far too high and is likely to stay above target for an extended period."
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