ECB raises rates by half a point, the last time was in 2011
There European Central Bank ah raised interest rates by half a point. It is the first increase since July 2011. The prime selling rate at 0.50%, the deposit rate at zero and the marginal lending rate at 0.75%. This was announced by the ECB after the meeting of the Governing Council. Via also the anti-spread shield: the “protective instrument of the monetary policy transmission mechanism which will ensure that” the monetary policy stance is transmitted in an orderly manner in all euro area countries “and” is a prerequisite for the ECB to fulfill its mandate to maintain price stability“.
The rate hike announced from 50 base, higher than previously, takes into account “the new current risks” and is allowed “by scudoll ‘further support ensured for the transmission of monetary policy by the ICTY”, the new anti – broadcast – said the president of the ECB Christine Lagarde. The euro area economy “is slowing down” and the war launched by Russia against Ukraine weighs heavily on this. The euro present in the Eurozone “is expected to remain annoyingly high” beyond 2022, also due to the “depreciation” of the exchange rate of the.
“In further Governing Council meetings will be appropriate normalization of interest rates“- writes the ECB, explaining that” anticipating the exit from negative interest rates to date allows the Governing Council to pass an approach in which decisions on rates are taken from time to time. The future evolution of the reference rates defined by the Governing Council will continue to be data-driven and will contribute to the achievement of the 2% medium-term target. ” The European stock exchanges are all improving after the rate hike of half a point decided by the ECB.
Copyright ©