Today inflation in the eurozone has exceeded the target of the European Central Bank by more than four times.
The European Central Bank (ECB) raised interest rates for the first time in 11 years following its July meeting. This was reported on his website on Thursday, July 21.
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“The Governing Council of the ECB considered it appropriate to take a larger first step towards the normalization of interest rates than was signaled at the previous meeting,” the press release said.
Thus, the base rate is raised by 50 percentage points. at 0.5%, the rate on deposits – at zero (previously it was negative -0.5% – ed.), the rate on margin loans – up to 0.75%.
Consumer prices in the euro area in June rose by 8.6% in annual terms, showed the final data of the EU Statistical Office. The indicator is the maximum since the beginning of the data calculation. Therefore, inflation in the region accelerated compared to 8.1% in May.
Inflation has exceeded the European Central Bank’s target of 2% by more than four times.
The ECB also introduced a new anti-crisis mechanism designed to limit fragmentation in the region, that is, to reduce the difference in the cost of borrowing for different eurozone states.
In addition, the report states that the regulator is planning “further normalization of interest rates.”
Recall that this year the European Commission expects record high inflation in the eurozone against the background of the war in Ukraine and high energy prices.
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.