The European Central Bank decided at its meeting today, Thursday, to raise the base interest rate by 25 basis points from 3.5% to 3.75% per annum, which is the highest level since 2008.
The regulator said in a statement: “The Governing Council has decided to raise the three main interest rates of the European Central Bank by 25 basis points. The interest rate on the main refinancing operations and interest rates on the margin credit line and deposit line will be increased to 3.75%, 3.25% respectively from May 10, 2023.”
The European Central Bank also expressed readiness to adjust all its instruments to ensure annual inflation returns to 2% in the medium term.
Earlier this week, inflation data showed that prices in the eurozone rose by 7% during April 2023, with the base rate falling slightly to 5.6%.
Yesterday, the US Federal Reserve decided to raise the main interest rate by 0.25 percentage points, to 5-5.25%, for the third time since the beginning of this year.
And US Federal Reserve Chairman Jerome Powell said after the decision that it is possible that the US will face a recession at a later time.
Source: Prime
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