In this way, the ECB rose to 3.25%, levels not seen in the deposit rate (where banks park their liquidity) since July 2008.
As the market discounted, the European Central Bank (ECB) raised the benchmark interest rates at its meeting this Thursday, and it has done so by 25 basis points (0.25%). The deposit facility rate and the marginal credit facility rate also increased by this same percentage.
Now, attention is focused on Christine Lagarde, president of the organization, and her scheduled press conference. “Investors will focus their attention on what Lagarde says about future rate action. They will also be aware of what you have to say about the crisis in the US banking sector and the impact that it may have on the evolution of credit in the Eurozone”, they point out in Link Securities.
In this way, the ECB rose to 3.25%, levels that were not seen in the deposit rate (where banks park their liquidity) since July 2008.. In this way, the ECB loosens the rate of increases, in line with the US Federal Reserve. The American central bank has already accumulated two consecutive meetings with increases of 0.25 points.
The rest of the main types also rise by 25 basis points. The main refinancing rate rises to 3.75%, while the marginal credit facility (emergency window where banks go to request liquidity) rises to 4%.
In this way, the ECB has raised the price of money by 3.75 percentage points (375 basis points) since the race to raise rates began in July 2022. Although the European Monetary Institute later began to fight inflation Like most central banks, the move is unparalleled in the euro’s short history. Now, the ECB is expected to continue raising interest rates until at least July, thus cutting ground for other big banks like the US Fed. While in the Eurozone the rate hikes have not ended, in the US there is already talk of when they will start to drop.
Source: Ambito
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