The full impact of the many interest rate steps is still unclear.
(Photo: dpa)
Frankfurt The European Central Bank (ECB) continues to raise interest rates in the euro area. It increases the key interest rate by a further 25 basis points to 4.5 percent. The currently even more important interest rate that banks receive on their deposits with the ECB is rising from 3.75 to 4.0 percent. The central bank announced this on Thursday afternoon.
“Inflation continues to fall, but is likely to remain too high for too long,” said ECB President Christine Lagarde, explaining the decision. The move marks the tenth rate hike in a row – interest rates are now at their highest level since 1999.
Lagarde admitted on Thursday that the decision was not unanimous. Some members of the Council had called for a break in interest rates given the weak growth prospects for the euro zone. Higher interest rates are considered an economic risk. But there was a “solid majority”.
>> Read here: This is how ECB President Lagarde explains the tenth interest rate hike in a row
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