Frankfurt The European Central Bank (ECB) is continuing to raise interest rates. However, for the first time since the start of the hike process, the central bank decided to take a small interest rate hike, i.e. an increase of 25 basis points.
With its decision, the central bank is reacting to the high inflation in the euro area. In April, this had risen from 6.9 to 7.0 percent. Central bankers are particularly worried about core inflation adjusted for energy and food. In the same period, it fell only very slightly from 5.7 to 5.6 percent.
A further tightening of monetary policy had been expected in advance. The scope of the rate hike was unclear. Somewhat surprisingly, the ECB has also announced that it will most likely accelerate the reduction in its balance sheet. The most important findings of the council meeting at a glance:
What is changing with interest rates?
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