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ECB ramps up all 3 key rates by 75 basis points


September, 08 2022
watermark Economic news

Following the results of the September meeting, the European Central Bank decided to simultaneously raise three key interest rates by 75 basis points. 


From September 14, the interest rate on the main refinancing operations will increase to 1.25%, interest rates on deposits – up to 0.75%, rates on margin credit line – up to 1.5%.


It is noted that for the first time in history, the regulator simultaneously raised the rate by this amount (75 bps). Moreover, in July of this year, the ECB raised the rate for the first time in 11 years, immediately by 50 bps.


Representatives of the European central bank noted that they intend to continue raising rates to combat high inflation, despite the fact that the bloc's economy is approaching a likely winter recession.


«This important step will accelerate the transition from the prevailing highly adaptive level of rates to levels that will ensure a timely return of inflation to the ECB's medium-term target of 2%,» the ECB said in a statement.


The regulator's decision coincided with the expectations of market participants, who have already estimated a more than 80% probability of a 75 basis point rate hike.


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