The European Central Bank Hikes Rates Again, Vows More In March

The European Central Bank raised interest rates again Thursday and signalled it would "stay the course" with an identical hike next month, even as the outlook in the eurozone brightens

Frankfurt, Germany, (UrduPoint / Pakistan Point News - 2nd Feb, 2023 ):The European Central Bank raised interest rates again Thursday and signalled it would "stay the course" with an identical hike next month, even as the outlook in the eurozone brightens.

The ECB lifted its key rates half a percentage point, as widely expected, seeking to curb soaring prices of energy and food.

Earlier the same day, the Bank of England hiked rates for a 10th time in a row, while America's Federal Reserve raised borrowing costs again Wednesday -- albeit at a slower pace.

The ECB has now raised borrowing costs three percentage points since launching its unprecedented campaign of monetary tightening in July.

Signs are growing the eurozone may have passed the worst of an economic shock, with inflation slowing from a peak in October and the single currency area eking out growth by the end of year 2022.

But making its latest rate hike, the bank said it would "stay the course in raising interest rates significantly at a steady pace", repeating the same hawkish language used after its last meeting in December.

The ECB "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 statement said.