The European Central Bank (ECB) is fighting record inflation in the euro area with another sharp rate hike of 0.75 percentage point. The main interest rate at which commercial banks can borrow fresh money from the central bank has risen to 2.0 percent, the ECB announced in Frankfurt on Thursday.
The currency guards around ECB boss Christine Lagarde decided on Thursday to raise the so-called main refinancing rate by three-quarters of a percentage point to 2.0 percent, just like in September.
In doing so, the ECB is responding to the recent steady rise in inflation, which last reached a new record level of 9.9 percent in September. Further interest rate steps must be decided “meeting by meeting”.
Further increases are in the pipeline
After September, this is the high rate hike in a row and already the third general tightening step. At the same time, monetary watchdogs expressed their willingness to raise interest rates further: the ECB Governing Council “assumes it will continue to raise interest rates,” he said. The decision is made from session to session.
Source: Krone
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