The ECB raises interest rates another 0.75% and places them at their highest level since 2009

The

(ECB) remains firm in its intention to make up for lost time and ground with respect to other major central banks.

There have been no surprises at its October meeting and there is no margin in the fight against inflation, which is why the institution has confirmed a new rate hike of 0.75%, so that the interest rate for its refinancing operations will be will be set at 2%, the deposit rate at 1.50% and the loan facility rate at 2.25%.

In other words, the price of money is thus at

The announcement has not disappointed the expectations of the markets, which had been anticipating the movement for weeks.

This is the third consecutive increase, after 0.5% in July and 0.75% in September, and thus underpins the aggressive strategy of the Eurobank chaired by

to deal with inflation that in September marked 9.9 %.

"With this third consecutive large increase in the official rate, the Governing Council has made substantial progress in withdrawing from accommodative monetary policy. The Council has taken today's decision and expects to raise interest rates further to ensure the return of inflation to its medium-term inflation target of 2%. The Governing Council will base the future trajectory of the policy rate on the outlook for inflation and the economy, following its meeting-by-meeting approach," points out the statement published by the entity at the end of its meeting in Frankfurt.

The bank has also decided to modify the terms and conditions of the third series of longer-term financing operations with a specific objective (

).

"During the acute phase of the pandemic, this instrument played a key role in countering downside risks to price stability. Today, in the face of the unexpected and extraordinary rise in inflation, it needs to be recalibrated to ensure it is consistent with the broader process of normalization of monetary policy and to reinforce the transmission of the increases in the policy rate to the credit conditions of the banks", explains the entity.

For this reason, the Governing Council has decided to adjust the interest rates applicable to TLTRO III

and offer banking entities additional voluntary early repayment dates.

In addition, the Governing Council has decided to set the remuneration of the minimum reserves at the ECB deposit facility rate "in order to more closely align the remuneration of the minimum reserves held by Eurosystem credit institutions with market conditions monetary".

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• Christine Lagarde