The European Central Bank has raised three key interest rates by 25 basis points
The ECB made such a decision in order to curb inflation
From 10 May 2023, the main refinancing rate for businesses, the marginal lending facility and the deposit facility rate will be increased to 3.75%, 4.00%, and 3.25%, respectively.
This is reported by the ECB's press service.
At the same time, these decisions will keep interest rates sufficiently tight to bring inflation back to the target level of 2%, the ECB emphasises.
The regulator believes that inflation in the eurozone will be too high for an extended period and intends to make further decisions based on input data and inflation forecasts.
"Key inflation indicators have been declining in recent months, but the underlying price pressure remains strong. Recent rate hikes have had a significant impact on monetary and financial conditions in the eurozone, while the speed and degree of impact on the real economy remain unclear," the ECB reports.
Besides, the ECB is going to cease reinvesting proceeds from bonds maturing in July this year as part of its Asset Purchase Programme (APP).
The central bank will reduce the amount of assets on its balance sheet by €15 billion per month until the end of June.
Background. Mind previously reported that the Federal Reserve had raised the base rate by 0.25 percentage points to 5–5.25%.
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