A Reuters poll expected the rate — officially called the main refinancing rate — to rise to 3.5%.
The deposit facility rate rose from 2.5% to 3%, in line with what was expected by analysts.
The ECB argued that the European banking system is resilient. However, he pointed out that inflation is too high and will remain so for a long time. The central bank also noted that pressures on the underlying index remain strong.
As far as inflation is concerned, the ECB estimates it will close 2023 at 5.3%, compared to the 6.3% forecast at the end of December; in 2024, it estimates that this indicator will end at 2.9% and 2.1% in 2025. In the euro zone, GDP is expected to grow by 1% this year -compared to the 0.5% forecast so far-, 1.6% in 2024 and 2025.
The refinancing rate is the cost that banks pay to obtain one-week financing from the ECB, while the deposit facility rate indicates the interest paid by the ECB to financial institutions for depositing money for one day.
With information from Reuters, EFE and AFP
