The European Central Bank again raised interest rates this Thursday (2) and indicated at least another high of the same magnitude next month.
The ECB has been raising rates at a record pace to combat a sudden burst of inflation in the euro zone – the byproduct of factors such as the fallout from the Covid-19 pandemic and an energy crisis that followed the Russian invasion of Ukraine.
The central bank of the 20 countries that share the euro raised the bank deposit rate by another 0.5 percentage points to 2.5%, in line with what was said in December and with market expectations.
The bank further stated that the next rate hike will be of the same size.
“Given the underlying inflationary pressures, the Governing Council intends to raise interest rates by a further 50 basis points at its next monetary policy meeting in March, and will then assess the subsequent path of its monetary policy,” the ECB said.
Prior to the decision, investors and economists had expected the ECB to raise its deposit rate by another 0.50 percentage point and take it to a peak of 3.25%/3.50% by summer, which would be the lowest level high since the turn of the century.
Source: CNN Brasil
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