12/15/2022, 2:15 PM (Source: TeleTrader)
more TeleTrader news

ECB hikes key interest rates by 50 bps

The European Central Bank (ECB) revealed on Thursday that it had decided to increase its key interest rates by 50 basis points, decelerating from the two consecutive 75 basis point rate hikes. The interest rate on the main refinancing operations will now stand at 2.50%, while the interest rates on the marginal lending facility and the deposit facility will be at 2.75% and 2% respectively, effective December 21.

The central bank stressed that the interest rates will "still have to rise significantly at a steady pace to reach levels that are sufficiently restrictive to ensure a timely return of inflation to the 2% medium-term target."

The ECB explained that inflation continues to stay "far too high" and is estimated to "stay above the target for too long." Inflation expectations were revised up, to average 8.4% in 2022, 6.3% in 2023, and 3.4% in 2024. The prospects for economic growth stood at 3.4% in 2022, 0.5% in 2023, 1.9% in 2024.

Baha Breaking News (BBN) / AY