The European Central Bank pulled the trigger on a record interest rate hike as Europe battles a Russian energy crisis and spiraling food prices

The European Central Bank raised its interest rates by 75 basis points.

In a press release, the central bank said that it was increasing its base rate from zero to 0.75% to discourage demand and guard against the risk of a persistent upward shift in inflation expectations.

The hike is the second in as many meetings for the central bank, which in July increased rates for the first time in over a year.

The euro was little changed after the decision by the European Central Bank. The single currency fell below $0.99 for the first time in two decades on Monday after Russia stopped natural gas flows to Europe.

Raising rates for a second time in three months comes against a backdrop of economic peril for Europe as it fights to combat the soaring cost of living, triggered largely by Russia's invasion ofUkraine, which has pushed up both food and energy prices in recent months.

Inflation in the Eurozone rose to 9.1% in August, its highest level since the creation of the single currency.

The Federal Reserve in the US and the Bank of England have both raised their rates six times in the last six months to fight inflation.

The scale of the increase in question was the only thing that had been anticipated by analysts. The central bank raised by 50 basis points in July, but different people thought it would raise by 75 basis points. Hikes are expected in the months to come.