European Central Bank (ECB) Raises Key Rate By 50 Basis Points To 3% Per Annum, Eyes Another Hike In March

The Board of Governors of the European Central Bank (ECB) at a meeting on Thursday raised the base interest rate by 50 basis points, to 3% per annum and considers a further increase necessary to achieve the inflation target of 2%, the regulator said in a statement

MOSCOW (UrduPoint News / Sputnik - 02nd February, 2023) The Board of Governors of the European Central Bank (ECB) at a meeting on Thursday raised the base interest rate by 50 basis points, to 3% per annum and considers a further increase necessary to achieve the inflation target of 2%, the regulator said in a statement.

"The Governing Council decided to raise the three key ECB interest rates by 50 basis points. Accordingly, the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will be increased to 3.

00%, 3.25% and 2.50% respectively, with effect from 8 February 2023," the statement says.

The ECB will adhere to raising interest rates significantly at a steady pace and in keeping them at elevated levels to return of inflation to its 2% medium-term target, it said.

"In view of the underlying inflation pressures, the Governing Council intends to raise interest rates by another 50 basis points at its next monetary policy meeting in March and it will then evaluate the subsequent path of its monetary policy," the central bank said.