The European Central Bank raises interest rates by a quarter percentage point and predicts that inflation will remain 'too high for too long'

The European Central Bank announced a new quarter-point rate increase on Thursday, bringing its key rate to 3.75 percent.

The most recent action concludes a full year of consecutive rate increases in the euro zone, which the ECB began in July to combat high inflation.

"Inflation continues to decline, but it is still expected to remain too high for too long," the bank said in a statement released on Thursday.