- ECB has aroused interest Interest rate up 75 basis points to 1.25%, in line with expectations.
- It raised the deposit facility rate by 75 basis points to 0.75%, higher than the expected 0.50%.
- The marginal lending facility rate is now 1.50%.
- It aims to ensure the timely return of inflation to the ECB’s medium-term target of 2%.
- Based on its current assessment, the Governing Council expects to raise interest rates further in the coming meetings in order to dampen demand and to avert the risk of a sustained upward movement in inflation expectations.
- Looking ahead, ECB experts have significantly revised their inflation forecasts and inflation is now expected to average 8.1% in 2022, 5.5% in 2023 and 2.3% in 2024.
- In July, the ECB raised interest rates by 50 basis points to 0.5% from 0% previously, beating expectations of 0.25% to support the ailing euro.
- Photo via Wikimedia Commons
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