2023-05-04 14:07:13
The Board of Governors of the European Central Bank (ECB) decided on Thursday “to increase the three main interest rates of the ECB by 25 basis points”, the Bank announced in a statement.
President of the European Central Bank (ECB), Christine LagardePhoto: Daniel Roland / AFP / Profimedia Images
The ECB thus signals the entry into the final stage of the interest rate hike cycle, after starting from July last year, the institution started the most aggressive cycle of monetary policy tightening.
Although the euro zone economy confirms pressures on inflation, the weak advance of credit demand makes the ECB much more careful before raising interest rates so as not to suffocate economic growth.
Thursday’s decision by the ECB comes just a day after a similar rate hike by the FED. Following today’s meeting, the ECB said that “inflation prospects remain too high for too long”, but limited itself to reiterating that it would continue to take a “data driven approach” to future policy decisions.
Eurozone inflation remains well above the ECB’s 2% target, having risen to 7% in April from 6.9% in March.
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