The central bank is raising interest rates for the second time this year.
(Photo: dpa)
Frankfurt The European Central Bank (ECB) continues to raise interest rates in the euro area. It raises the key interest rate by 0.75 percentage points to 1.25 percent. The currently even more important interest rate that banks receive for their deposits at the ECB has risen from zero to 0.75 percent. The central bank announced this on Thursday afternoon.
This is the largest hike in ECB history, barring a technical adjustment in the weeks just after monetary union began.
The rate hike is therefore as expected. The markets had increasingly priced this in over the past few weeks.
With its decision, the ECB is reacting to the further increase in inflation in the euro area, which rose to 9.1 percent in August. The central bank is actually aiming for a value of two percent. Economists expect that it could exceed the ten percent mark in the fall. Above all, the drastic increase in gas prices is likely to drive up inflation further.
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Several council representatives had signaled a large interest rate hike in the run-up to the council meeting. From 2:45 p.m., ECB President Christine Lagarde will give a press conference on the new decisions. You can follow them on our homepage in the live blog.
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