Back

ECB raises rates by 75 bps for 3rd straight time, hints at more hikes

Informist, Thursday, Oct 27, 2022

 

NEW DELHI – The European Central Bank today raised its policy rates by 75 basis points, the third time in a row, and hinted at more such hikes in an attempt to tame inflationary pressures.

 

Accordingly, the interest rate on the main refinancing operations, marginal lending facility and deposit facility will be increased to 2.00%, 2.25% and 1.50%, respectively, with effect from Nov 2, the central bank said.

 

"With this third major policy rate increase in a row, the governing council has made substantial progress in withdrawing monetary policy accommodation," the central bank said in a release.

 

The central bank's governing council expects to raise interest rates further, to ensure the timely return of inflation to its 2% medium-term inflation target.

 

"The governing council will base the future policy rate path on the evolving outlook for inflation and the economy, following its meeting-by-meeting approach," the central bank said.

 

Inflation remains "far too high" and will stay above the target for an "extended period", it noted. In September, inflation in the euro area had reached 9.9%.

 

In recent months, soaring energy and food prices, supply bottlenecks and the post-pandemic recovery in demand have led to broadening of price pressures and an increase in inflation, the central bank said.

 

"The governing council's monetary policy is aimed at reducing support for demand and guarding against the risk of a persistent upward shift in inflation expectations."

 

The ECB expects inflation to average 8.1% in 2022, 5.5% in 2023, and 2.3% in 2024.  End

 

Reported by Priyansh Verma

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2022. All rights reserved.

Other News.

Data Alert: GST mop-up rises 10% on year to 1.627 trln rupees in Sep

Informist, Sunday, Oct 1, 2023–India Sep total GST collections up 10% on year –States' Sep GST revenue post-settlement 652 bln rupees –Centre's Sep GST revenue post-settlement 636 bln rupees –India Sep GST cess mop-up 116 bln rupees vs 117 bln Aug –India Sep Integrated GST mop-up 836 bln rupees vs 833 bln Aug –India Sep State GST mop-up 377 bln […]

RBI extends last date for withdrawal of 2,000-rupee notes to Oct 7

Informist, Saturday, Sep 30, 2023 –RBI: Issue Offices to exchange 2,000-rupee notes up to 20,000 rupees –RBI: 19 RBI Issue Offices to exchange 2,000-rupee note from Oct 8 –RBI: Extended facility to return, withdraw 2,000-rupee note till Oct 7 –RBI: Banks received 3.42 trln rupees in 2,000-rupee notes till Fri  NEW DELHI – The Reserve Bank of India today extended the […]

IMD sees India Oct-Dec rainfall normal at 88-112% of long period avg

Informist, Saturday, Sep 30, 2023 –IMD: Monsoon likely to withdraw from most parts of India by Oct 15–India rainfall in Sep 13% above normal at 190 mm–Rainfall in central India 49% above normal at 264.8 mm in Sep–Rainfall in south peninsula 24% above normal at 198.9 mm in Sep–India rainfall during Jun 1-Sep 30 5.6% below normal at 820 […]