“Now we are focusing on rates, it is premature to talk about Quantitative Tightening”. Thus the ECB number one Christine Lagarde, in the press conference following the decision of the Governing Council of the ECB to raise the three reference interest rates of the euro area by 75 basis points.
Interest rates on main refinancing operations, marginal lending facility and central bank deposits will be raised to 1.25%, 1.50% and 0.75% respectively, with effect from 14 September 2022.
The statement with which the ECB announced the monetary tightening states that “in perspective, the ECB experts have significantly revised upwards the projections on inflation, which would therefore reach an average of 8.1% in 2022, at 5 , 5% in 2023 and 2.3% in 2024 “.