Lhe Council of Governors of the European Central Bank (ECB) took the decision on Thursday to raise its rates, with the aim of “bringing inflation back to its medium-term target of 2%. This news was expected, but marks a major turning point in the euro zone, signifying the end of the era of negative rates that began in 2014.
The three key interest rates of the ECB are increased by 50 basis points, announces the institution. “The interest rates on the main refinancing operations, the marginal lending facility and the deposit facility will be raised to 0.50%, 0.75% and 0.00% respectively from 27 July 2022”.
The European Central Bank (ECB) will continue at its next meetings its “normalization” of monetary policy, marked on Thursday by the raising of its interest rates, and believes that other increases “will be relevant” in the future in the face of galloping inflation.
The magnitude of these monetary policy moves will be “data dependent”, euro guardians say in a statement after ending the era of negative rates faster than expected in