ECB raises interest rates to fight off inflation jump
- On Thursday, the European Central Bank raised its key deposit facility rate to 2.5%, marking its second hike since June as it responds to persistent inflationary pressures amid Middle East conflict.
- The eurozone, a net energy importer, has seen inflation exceed the ECB's 2% target since Middle East conflict threatened commodity transit through the Strait of Hormuz, causing oil prices to spike.
- August data revealed eurozone inflation reached 3.3%, with energy inflation surging to 14.3% from 10.3%; core inflation fell to 2.4% from 2.5%, while services inflation dropped to 3% from 3.3%.
- Investors remain divided over the ECB's rate path, with a Deutsche Bank survey showing no consensus about where the central bank's hiking cycle will ultimately sit.
- Economists debate whether this move marks the start of a protracted tightening cycle, while the Federal Reserve, Bank of England, and Bank of Japan prepare for their own rate decisions in coming weeks.
152 Articles
152 Articles
The Governing Council of the European Central Bank (ECB) decided to raise the three key interest rates by 25 basis points from September 16.
The euro bank raises the deposit rate to 2.5 percent. Observers generally expected the move. They are divided as to whether more will follow this year.
Rome, 10 Sep. (Adnkronos) - The Governing Council today decided to raise the ECB's three reference interest rates by 25 basis points. The conflict in the Middle East continues to generate pressure on inflation, which should remain well above the target for a longer period of time, says Frankfurt. "Today's decision underlines the Governing Council's commitment to define monetary policy so as to ensure that inflation stabilizes on the 2% medium-te…
Kronen Zeitung
ORF.at NewsThe European Central Bank tightens the monetary policy stance because of persistent inflation. The let interest rate has been increased by another quarter and now stands at 2.50%.
In view of high inflation, the ECB has raised the key interest rate from 2.25 to 2.5 percent. It is already the second increase this year.
ECB raises rates as Middle East conflict fuels inflation pressures
The European Central Bank (ECB) raised its three key interest rates by 25 basis points on Thursday, citing continued inflationary pressures from the conflict in the Middle East and warning that inflation was likely to remain above target for an extended period. The ECB’s governing council said the decision reflected its commitment to ensuring that […]
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