The European Central Bank raised the base rate to 3.75% per annum
The European Central Bank (ECB) decided to raise the base interest rate by 25 points – up to 3.75% per annum from the previous 3.5%. On Thursday, May 4, reports RIA News with reference to the regulator’s statement.
“The Board of Governors has decided to raise the ECB’s three key interest rates by 25 basis points. Thus, the interest rate on the main refinancing operations and the interest rates on the margin credit line and deposit line will be increased to 3.75%, 4% and 3.25% from May 10, 2023,” the message reads.
In addition, the ECB announced its readiness to adjust all its instruments to return to the annual inflation rate of 2% and keep the monetary policy transmission running smoothly.
In March, the Board of Governors of the European Central Bank (ECB) decided raise the base interest rate by 50 basis points – from 3% to 3.5% per annum. The tightening of monetary policy in the ECB was explained by high inflation. In particular, according to the results of February, the highest annual inflation was observed in Latvia (20.1%). In Estonia and Lithuania, the figure is slightly lower – 17.8% and 17.2%, respectively. The lowest inflation is in Luxembourg (4.8%) and Belgium (5.5%).