In the statement made by the ECB it was stated that the bank increased three main policy rates by 50 basis points. Economists had expected that interest rates would be increased by 25 percentage points.
In the statement the bank's refinancing interest was changed from 0.00 percent to 0.50 percent, the interest rate paid for deposits held by banks at the central bank from -0.50 percent to 0.00 percent, and the marginal interest rate to 0.25 percent. It was reported that it was increased from 0.75 percent to 0.75%.
The ECB ended the negative interest rate period with its decision to increase interest rates above the expectations.
The bank has increased with this step interest rates for the first time since July 2011.
In the ECB decision text, it was stated that the use of the Bank's crisis tools is not limited to the steps that can be predicted in the market, and the expression "It is possible that interest rates will normalize further in the next meetings".
It was stated that TPI (Transitional protection instrument) is a necessary tool for the effective implementation of the bank's monetary policy and due to the different pace of recovery in the economies in the Euro Area.
European Central Bank President Christine Lagarde had previously left the door open for an interest rate hike of more than 25 basis points, saying, "If we see higher inflation threaten expectations, we will withdraw stimulus more quickly."
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