The European Central Bank decided in its meeting today, Thursday, to raise the base interest rate by 25 basis points from 3.5% to 3.75% annually, the highest level since 2008.
The regulator said in a statement: “The Governing Council decided to raise the three main interest rates of the European Central Bank by 25 basis points. The interest rate on major refinancing operations and the interest rates on the margin credit line and the deposit line will be increased to 3.75%, 4% and 3.25%, respectively. As of May 10, 2023.”
The European Central Bank also expressed its willingness to adjust all its tools in order to ensure that annual inflation returns to 2% in the medium term.
Earlier, this week’s inflation data showed that prices in the eurozone rose by 7% during April 2023, with the core rate declining slightly to 5.6%.
Yesterday, the US Federal Reserve decided to raise the main interest rate by 0.25 percentage points, to between 5 and 5.25%, for the third time since the beginning of this year.
US Federal Reserve Chairman Jerome Powell said, following the decision, that it is not excluded that the United States will face a recession at a later time.
This article was originally published by RT.
