Due to high inflation, the European regulator raised key rates by 25 basis points.
The European Central Bank on Thursday, May 4, raised three key interest rates by 25 basis points. This was reported by the press service of the ECB.
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From May 10, the interest rate on the main refinancing operations and interest rates on the marginal lending line and the deposit line will increase to 3.75%, 4.00% and 3.25%, respectively.
The regulator believes that inflation in the euro area will be too high in the long term, and intends to make further decisions based on incoming data and inflation estimates.
The ECB emphasized that these decisions will keep rates at a sufficiently restrictive level to bring inflation back to the target level of 2%.
“A key indicator of inflation has been declining in recent months, but underlying price pressures remain strong. Recent rate hikes have had a significant impact on monetary and financing conditions in the eurozone, while the pace and extent of the impact on the real economy remains uncertain,” he added. central bank.
The ECB also plans to stop reinvesting proceeds from redeemable bonds under the asset buyback program in July this year. Until the end of June, the central bank will reduce the amount of assets on its balance sheet by 15 billion euros per month.
It can be recalled that annual inflation in the 20 eurozone countries slowed to 6.9 percent in March.
Source: korrespondent
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