With a new interest rate hike of 0.25 basis points European Central Bank (ECT).

Thus, after the seventh increase in a row, the ECB’s key interest rate is now set at 3.25%. This decision was expected and largely already discounted by the markets.

In its statement, the ECB indicates that future decisions of the Governing Council will ensure that key interest rates are achieved at levels that ensure timely return of inflation to the medium-term target level of 2% and will be maintained at these levels for as long as necessary.

Board of Directorsemphasizes in the statement, will continue to make decisions on interest rates in accordance with the data that will apply at any given time.

In particular, interest rate decisions by the Board of Governors will continue to be based on its assessment of the outlook for inflation in the light of new economic and financial data, inflation dynamics and the strength of monetary policy.

At the same time, the ECB said it would continue limitation of the bond portfolio he owns (APP and PEPP).

This decision was supported by a slight decline in structural inflation in April. 5.6% from 5.7% what happened last month.

At the same time, however, the figures released by the ECB show that due to the increase in the cost of servicing loans, banks are limiting the issuance of new loans to businesses and households as a result of lower demand.

Recall yesterday US Federal Reserve Bank raised interest rates to their highest level in 16 years. In particular, he increased the key interest rate by 0.25 units the basis – it’s about her 10th promotion in 14 months.