Interest rate decision in Europe – ECB raises interest rates by 0.25 percentage points – News

• The European Central Bank has decided to raise the key interest rate again in the currency area.
• It raises the key interest rate by 0.25 percentage points to 3.75 percent.
• The European Central Bank (ECB) is taking its foot off the gas a bit on its course to increase interest rates in the fight against high inflation.

The central bank raised key rates by just a quarter of a point at its Frankfurt interest rate meeting, after raising them by half a point in March. The deposit rate, which is the benchmark on the financial markets and which banks receive for parking excess funds, thus rises from 3.00 to 3.25 percent.

The key interest rate, at which commercial banks can obtain fresh money from the ECB, has now risen to 3.75 percent. If banks park money at the ECB, they will receive 3.25 percent interest in future, as the central bank announced in Frankfurt.

With the interest rate hikes that began last July, the monetary watchdogs are trying to curb high inflation. Higher interest rates make loans more expensive. This can slow down demand and counteract high inflation rates. In the medium term, the ECB is aiming for price stability in the euro area with an inflation rate of two percent.