The European Central Bank (ECB) raised this Thursday by 75 basis points -up to 2%- its interest rates in a measure to curb runaway inflation in the old continent, a product, meanwhile, of the war in Ukraine.
(The European Central Bank raised interest rates to 2%).
The ECB also raised by the same amount the credit facility, to which it lends to banks overnight, up to 2.25%, and the deposit facility, to which it remunerates excess reserves overnight, up to 1.5%, recalled the Efe agency.
In this way, the monetary entity “stick” to market expectations, recalled Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics. For the analyst, the entity “is insinuating that there will be a slowdown in the pace of adjustment.”
(The US came out of a technical recession: its economy grew 0.6%).
For Mabrouk Chetouane, global head of market strategy at Natixis Investment Managers, looking ahead to 2023, the entity “will have to choose between preserving financial stability and fighting inflation in a high-risk context”, especially in terms of growth. economic. “There is evidence of a delicate exercise,” added the expert.
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