The European Central Bank (ECB) raised interest rates by 0.50% as anticipated yesterday, marking the fifth consecutive interest rate increase.
The deposit rate rose to 2.5% as a result of the interest rate increase.
In addition, the ECB signaled more interest rate hikes to tackle inflation and clearly stated that the ECB will raise interest rates by another 0.50% at its March meeting.
The ECB raised interest rates by 0.50% in July 2022, which marked the first interest rate increase in 11 years and the largest since 2000. It was followed by 0.75% rate hikes in September and October, and a 0.50% increase in December.
ECB President Christine Lagarde stated earlier that the ECB will continue to raise interest rates and maintain high interest rates for as long as needed to bring inflation to the ECB’s target of 2%.