FRANKFURT, July 21, 2022 (Xinhua) The European Central Bank on Thursday raised its key interest rates by 50 basis points, the first increase since 2011, in a bid to normalize its monetary policies.
A statement published by the European Central Bank after a meeting of the Board of Governors here said that interest rates on key refinancing operations and interest rates on marginal lending facilities and deposit facilities, the bank’s three main interest rates, will be increased to 0.50 percent, 0.75 percent and 0.00 percent, respectively. starting from 27 July 2022.
The decision to raise interest rates by 50 basis points, higher than expected, came as a surprise, as the central bank indicated in June a 25 basis point increase in July.
The European Central Bank’s decision comes at a time when hyperinflation is dominating the Eurozone. /ts/