European Central Bank raises interest rate by 75 basis points



European Central Bank raises interest rate by 75 basis points

The European Central Bank (ECB) announced its much-anticipated interest rate decision in the past few minutes.

In the Eurozone region, where inflation gradually climbs, the CPI increased from 8.6 percent to 9.1 percent between June and August. rose. Pressing the button to combat inflation, the ECB increased interest rates for the first time in 11 years last July and decided to increase it by 50 basis points. gave.

After the decision, the refinancing interest increased to 0.50 percent, the marginal loan interest rate to 0.75 percent, while the deposit interest rate, which was -0.50 percent, moved to 0 percent.

While the ECB said that the decisions after the meeting in July will be taken according to the data and that the medium-term inflation target is 2 percent, the markets were mainly expecting an increase of 75 basis points at the meeting to be held today.

The European Central Bank Governing Council has just passed the interest rate decision. announced. bank, interest 75 basis points decided to increase it.

With this decision expected by the markets, the deposit interest rate in the region increased. 0.75 percentIt has risen to .

In addition to its stance on interest rate decisions, the ECB also updated its inflation expectations. According to the press release issued by the bank, the average inflation in the region in 2022 is expected to be 8.1 percent, 5.5 percent in 2023 and 2.3 percent in 2024, which is close to the target.

Crisis in the most important inflation item

Eurostat August 2022 to the data According to the report, the item with the highest inflation rate on an annual basis was “energy” with 38.3 percent. Calculations show that annual inflation in the euro area is 5.8 percent, excluding the “energy” item.

Russian President Vladimir Putin’s gas supply to Europe for the second time in a short time by cutting However, the increase in energy prices is expected to continue. Time will tell whether the ECB will continue to take measures in the interest rate for this increase.

Soruce : https://tr.cointelegraph.com/news/europes-central-bank-hikes-interest-rates-by-75-basis-point

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