“The rate hike of 75 basis points was supported by a large majority” of the Governing Council of the ECB. This is what we read in the minutes of the European Central Bank led by Christine Lagarde, which have just been released. The minutes relate to the last meeting on 27 October, when the ECB raised rates by 75 basis points for the second consecutive time.
“The opinion according to which the outlook on inflation continued to worsen was widely shared”, reads the minutes, which remarked that “the ECB must continue to normalize and make monetary policy restrictive”.
At the same time, the ECB may wish “to pause, in case there is a deep and prolonged recession”.
Furthermore, the minutes revealed that “some members of the Governing Council of the ECB have shown themselves more in favor of increasing rates by 50 basis points”.
Christine Lagarde’s ECB announced on 27 October a new maxi rate hike of +75 basis points, after the historic one, the first of that intensity since the birth of the euro, on 8 September last.
Interest rates on the main refinancing operations, the marginal lending facility and the deposit facility will be raised to 2.00%, 2.25% and 1.50% respectively.