Markets responded with some volatility to the ECB’s decision to raise interest rates by three-quarters of a percentage point, to 1.25%, the highest ever rise, to curb euro area inflation, which soared in August up to 9.1%.
The President of the European Central Bank (ECB), Christine Lagarde, said that the Governing Council unanimously decided to raise interest rates in the euro area by three quarters of a point because inflation “It is very high and it will continue to be very high.”
Likewise, the ECB revised upwards its inflation forecast in the eurozone for this year to 8.1%, 1.3 points above the previous one; as well as those of 2023, up to 5.5% (two points more), and 2024, up to 2.3% (two tenths more).
Banks led the biggest increases, led by Bankinter, Caixabank and Banco Sabadell. With smaller rises were BBVA and Santander.
Source: Ambito
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