European Central Bank hikes interest rates by 25bps to fight persistent inflation

Rates on main refinancing operations, deposit facility, marginal lending facility to be raised to 4.50%, 4%, and 4.75%, respectively

By Tuba Ongun

The European Central Bank on Thursday raised its three key policy interest rates by 25 basis points to fight persistent inflation.

Despite its downward trend, the inflation is expected to remain "too high for too long," the bank said in a statement.

According to flash estimates released by Eurostat, the euro area's annual consumer inflation rate was stable at 5.3% in August, still above the bank's 2% medium-term target.

The rate on the main refinancing operations will be increased to 4.50%, effective from Sept. 20.

The deposit facility rate will be at 4% and the marginal lending facility rate will be at 4.75%.

Kaynak:

This news has been read 165 times in total