The ECB President is discussing the scope of the next rate hike with her Council colleagues.
(Photo: Bloomberg)
Frankfurt The European Central Bank (ECB) is facing a difficult decision at its council meeting on Thursday. The markets are expecting a rate hike of 0.75 percentage points to 1.25 percent for the base rate and 0.75 percent for the currently even more important interest rate that banks receive for their deposits at the ECB. This would be the largest hike in the history of the central bank.
In view of the surprisingly high inflation figures again, the probability of this has recently increased. Several council members signaled their support. But this is not settled. The Handelsblatt summarizes the three central points that are important this Thursday:
1. How much is the ECB raising interest rates?
For a long time, an increase of 0.5 percentage points was considered likely. In recent weeks, however, important central bank officials have signaled sympathy for a step of 0.75 percentage points.
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