By 75 basis points, according to money markets and analysts, the European Central Bank raised interest rates at today’s meeting to determine monetary policy, thus moving to the second consecutive increase in such a range.
At the same time, ECB officials tightened conditions for a total of 2 trillion. dollars in cheap financing they provided to banks to prevent them from making easy profits on interest rate differentials.
Now, after today’s increase, the interest rate on the deposit line has been set from 0.75% to 1.50%, on the main refinancing operation from 1.25% to 2%, and the rate on the margin credit line from 1.50% has been fixed. by 2.25%.
For the ECB, the fight against ever-increasing inflation (it reached 9.9% in the eurozone in September) is a one-way street. In this context, monetary tightening is inevitable for ECB officials.
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Source: Kathimerini
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