The ECB is therefore raising its interest rates for the tenth time in a row, to stop inflation in the eurozone and despite the fact that the economy is stagnating.
The Governing Council of the European Central Bank (ECB) has decided to increase the three official ECB interest rates by 25 basis points. As a result, the interest rate on the main refinancing operations and the interest rate on the marginal credit facility and the deposit facility will increase to 4.50%, 4.75% and 4.00% respectively with effect from September 20, 2023.
With this ten consecutive increase in the money price, which has reached the highest level in more than twenty years, the ECB continues to tighten its monetary policy.
The ECB has revised down its economic growth forecast for the eurozone in 2023 by two-tenths to 0.7%, while raising its average inflation estimate for this year by two-tenths to 5.6%.
The organization maintains this year’s underlying inflation forecast, which excludes food and energy, at 5.1% in 2023, and lowers it slightly for the next two years.
The Governing Council believes that the ECB’s official interest rates have reached a level that, if maintained for a sufficiently long period, will contribute substantially to an early return of inflation to the 2% target.
Source: EITB
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