October 28, 2022

ECB raises interest rates by 0.75%

categories : banking

European Central Bank President Christine Lagarde said the bank aimed to insure a timely return to its 2% inflation target

The European Central Bank (ECB) today raised its three key interest rates by 75 bp, or 0.75%, building on its last rate rise in September, which saw only its marginal lending late rise by that amount.

The announcement was made by the bank’s President Christine Lagarde, who said inflation remains too high and will stay high, and that the move was designed to ensure its timely return to its 2% target. Inflation reached 9.9% in the euro area in September.

She said: “In recent months, soaring energy and food prices, supply bottlenecks and the post-pandemic recovery in demand have led to a broadening of price pressures and an increase in inflation.

“The Governing Council’s monetary policy is aimed at reducing support for demand and guarding against the risk of a persistent upward shift in inflation expectations.”

zawya

banking

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