The European Central Bank (ECB) raised its rate for the first time in more than 11 years in an attempt to curb skyrocketing inflation in the euro zone.

The ECB raised its rate by 50 basis points to 0.5 percent on Thursday and plans to raise it further during the year.

The rate has been negative since 2014 to encourage banks to lend rather than deposit money with the ECB.

Consumer prices rose at a record 8.6% in the 12 months through June.

That's well above the bank's 2% target.

Some central banks, including the Bank of England, are raising rates as prices accelerate.

Rising energy, fuel and food prices are driving up inflation, the BBC notes.