ECB raises interest rates by 0.75% as expected

At its meeting yesterday, the European Central Bank (ECB) decided to raise interest rates by 0.75% in line with market expectations.

Effective September 14, the ECB raised the deposit rate to 0.75%, the refinancing rate to 1.25% and the lending rate to 1.50%.

The ECB also signaled further rate hikes, stating that “inflation remains too high and is likely to stay above the ECB’s target for some time.”

The ECB raised interest rates for the second consecutive month, following a 0.50% hike in July. This was the first rate hike in 11 years and the largest rate hike since 2000 to curb rising inflation.

According to Eurostat, the statistical office of the European Union, the consumer price index (CPI) in the euro zone rose to 9.1% in August, the highest level since Eurostat began collecting data.

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