Eurozone – interest rates. The ECB made a decision

The bank’s decision was in line with analysts’ expectations. Over the past 10 months, the ECB has been raising interest rates. by 50 bps

“Prospects for inflation they stay too high for too long. In the light of persistently high inflationary pressures, the Governing Council decided today to raise the three key ECB interest rates by 25 basis points. Overall, the incoming information broadly supports the Governing Council’s assessment of the medium-term outlook for inflation at its previous meeting. Headline inflation has slowed down in recent months, but price pressures remain strong. At the same time earlier interest rate increases have a strong impact on financial and monetary conditions euro areawhile delays and transmission to the real economy remain uncertain.

“Future decisions by the Governing Council will ensure that the key interest rates are brought down to levels sufficiently restrictive to achieve a timely return of inflation to the medium-term inflation target of 2% and will be kept at this level for as long as necessary. The Governing Council will continue to use a data-driven approach to determine the appropriate level and duration of restrictive monetary policy conditions In particular, the Governing Council’s interest rate decisions will continue to be based on an assessment of the inflation outlook in the light of incoming economic and financial data, underlying inflation dynamics and the strength of policy transmission money,” it added.

Christine Lagarde, President of the ECB, will hold a press conference before 3 p.m. to present the reasons for the Governing Council’s decision.

After the announcement of the decision euro exchange rate falls by 0.13 percent. against the dollar to 1.1044. Yield on 10-year bunds increases by 1 bp. to 2.26 percent The next ECB meeting will take place on June 14-15. The latest macro projections will be presented after the meeting.