On Thursday, the European Central Bank raised its key interest rate by 0.5 percentage points, choosing to tighten monetary policy more moderately than in previous months, while demonstrating its determination to fight inflation.

The Frankfurt-based institution raised three key interest rates to a range of 2 percent to 2.75 percent.

The bank specified in statement He intends to continue raising interest rates in the coming months.

In a statement, he said the Governing Council had decided to increase the ECB’s three key interest rates by 50 basis points on the basis of a significant upward revision in inflation expectations.

He stressed that interest rates still need to be raised significantly at a regular pace to reach sufficiently containable levels to ensure that inflation returns to the 2% target as soon as possible over the medium term.

He said that going forward, keeping interest rates at a restrictive level would reduce inflation by curbing demand and preventing the risk of a further increase in inflation expectations.

Source: agencies

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Robin Jackson is the editor-in-chief at 24PalNews. As an editor and author who covers business and finance, Robin shares the latest business news, trends, and insights with his extensive audience.

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