The European Central Bank raised interest rates by a quarter of a percentage point to 4% Thursday and hinted it was done with its protracted campaign of rate hikes to tame stubborn inflation.

The Bank of England and European Central Bank both held their benchmark rates steady. Even though inflation has been slowing, they gave no indication of when rates would start to come down.

The Bank of England decided, by a slim margin among its policymakers, to cut interest rates on Thursday for the first time in more than four years amid slower inflation. Britain’s central bank ...