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21 Jul, 2022 13:09

European Central Bank hikes key rate

The Eurozone regulator decided to go with a larger-than-expected 50 basis-point increase
European Central Bank hikes key rate

The European Central Bank (ECB) has hiked interest rates for the first time in 11 years on Thursday, going for the 50 basis-point increase instead of the previously anticipated 25 basis-point hike, the regulator announced in a press-release on its website.

Today, in line with the Governing Council’s strong commitment to its price stability mandate, the Governing Council took further key steps to make sure inflation returns to its 2% target over the medium term. The Governing Council decided to raise the three key ECB interest rates by 50 basis points,” the announcement stated.

According to the ECB, its decision was based on the “updated assessment of inflation risks,” and the council found it “appropriate to take a larger first step on its policy rate normalization path than signaled at its previous meeting.”

The regulator noted that further rate hikes are possible, but decisions will be made in accordance with inflation indicators at future council meetings.

For more stories on economy & finance visit RT's business section

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