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ECB raises interest rates by 0.50% amid banking crisis

In an effort to curb inflation amid concerns about the stability of the banking system, the European Central Bank (ECB) has raised interest rates by 0.50%, despite the recent fall in the stock market. This marks the sixth consecutive rate hike by the ECB.

The decision to raise interest rates is in line with the ECB’s previous indications and brings the deposit rate to 3.0%. The ECB has stated that future interest rate decisions will be based on information received by the bank and that it will closely monitor market conditions, ready to take any necessary measures to stabilize prices and the financial system.

ECB President Christine Lagarde has previously announced that the ECB will continue to raise interest rates and maintain high interest rates as long as necessary to push inflation down to the ECB’s 2% target. In February, inflation reached 8.5%, well above the target level.

The ECB’s decision to raise interest rates has been met with mixed reactions. While some experts believe it is necessary to combat inflation, others have expressed concern that the move could exacerbate the ongoing banking crisis.

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