The Board of Directors of the European Central Bank, meeting on Thursday for the first time in history, raised the key rate by 75 points – to 1.25% from 0.5% per annum.
According to the bank, a further increase is expected at the next few meetings.
The statement added: “The Governing Council has decided to raise the European Central Bank’s three key interest rates by 75 basis points. Accordingly, the interest rate on the main refinancing operations, the interest rates on the marginal credit line and the deposit line will be increased to 1.25%, 1. 5% and 0.75% consecutively from September 14, 2022.
“Based on its current assessment, the board expects further interest rate hikes over the next few meetings to discourage demand and protect against the risks of a continued rise in inflation expectations,” the statement said.
The European Central Bank notes that this decision is motivated by the goal of achieving an inflation index of 2% in the medium term.
The Board of Directors of the Bank intends to refinance principal payments on securities under the PEPP program, payable by the end of 2024.
Source: RIA Novosti