The European Central Bank on Thursday delivered its first interest rate hike in over a decade, joining other major central banks in the race to get on top of surging inflation.

The United States, Canada, New Zealand, and Switzerland among others have lined up in recent weeks with aggressive rate rises. Japan, which is yet to lift rates in this cycle, is left as the holdout dove among the 10 big, developed economies.

The ECB raised its benchmark deposit rate by 50 basis points to zero percent, breaking its own guidance for a 25-basis point move as it joined global peers in jacking up borrowing costs. It was the ECB's first-rate increase in 11 years.

Policymakers also agreed to provide extra help for the euro zone's big debtor nations - Italy among them - with a new bond purchase scheme. Sources told Reuters they did not expect to use it imminently despite a selloff in Italian bonds.

Ending an eight-year experiment with negative interest rates, the ECB also lifted its main refinancing rate to 0.50%, and promised another hike, possibly as soon as its Sept. 8 meeting, with more to follow later.