The European Central Bank raised its base rate by 25 basis points to a record 4.5%.
The European Central Bank raised its base rate for the 10th time in a row on Thursday, September 14, to 4.5%, in an attempt to cope with high inflation in the European Union. This is stated in the message of the regulator.
“Inflation continues to decline, but is expected to remain too high in the long term. The Governing Council is committed to ensuring that inflation returns to the medium-term target of 2% in a timely manner. To strengthen progress towards to this end, the Governing Council has decided to increase the three main interest rates of the ECB by 25 basis points,” the bank said.
Accordingly, the interest rate on the main refinancing operations and the interest rates on the marginal lending line and deposit line will increase to 4.50%, 4.75% and 4% from September 20.
This puts rates at their highest level since the introduction of the euro in 1999.
The ECB staff’s September macroeconomic forecasts for the eurozone call for average inflation of 5.6% in 2023, 3.2% in 2024 and 2.1% in 2025.
Let us remind you that in August, due to the collapse of the ruble, the Central Bank of the Russian Federation sharply increased the rate from 8.5% to 12% per annum.
Source: korrespondent
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