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The European Central Bank (ECB) has today announced an unprecedented rate rise of 75 basis points as it attempts to stave off spiralling inflation.
The bank said interest rates on main refinancing operations, the interest rates on the marginal lending facility and the deposit facility will be increased to 1.25%, 1.50% and 0.75% respectively.
In a press release issued today, the bank said: “This major step frontloads the transition from the prevailing highly accommodative level of policy rates towards levels that will ensure the timely return of inflation to the ECB’s 2% medium-term target.”
The bank said it had significantly revised up inflation projections, with inflation now expected to average 8.1% in 2022, 5.5% in 2023 and 2.3% in 2024.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
