The ECB raises its key interest rates by half a point

2023-03-16T16:50:05.770Z

The European Central Bank raises rates by half a percentage point. The Frankfurt Institution is therefore sticking to its plan to tighten its monetary policy to fight inflation,...The ECB raises its key interest rates by half a point European Central Bank (ECB) President Christine Lagarde speaks at a press conference following the ECB's monetary policy meeting in Frankfurt, Germany, March 16, 2023. REUTERS - HEIKO BECKER Text by: RFI Follow 2 min The European Central Bank raises rates by half a percentage point. The Frankfurt Institution is therefore sticking to its plan to

The ECB raises its key interest rates by half a point

European Central Bank (ECB) President Christine Lagarde speaks at a press conference following the ECB's monetary policy meeting in Frankfurt, Germany, March 16, 2023. REUTERS - HEIKO BECKER

Text by: RFI Follow

2 min

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Regardless of the events of the last few days, Christine Lagarde persists and signs. A new monetary tightening of 50 basis points. While inflation is expected to fall to 5.3% this year, it could rise again in 2024. This is clearly not the time to give up the fight. On the contrary.

The European Central Bank is the first since the collapse of Silicon Valley Bank and two other US regional banks to announce that it will continue its monetary policy. It is even committed to raising rates significantly in the coming months, while the specter of a new banking crisis could have prompted it to be more cautious.

But the economic horizon seems to be brighter. In addition to lower inflation, the euro area is expected to grow faster than expected in 2023. Energy price inflation is also expected to slow. The European economy is resilient in the face of the difficult international environment, said the guardians of the euro at their meeting in Frankfurt.

"We are monitoring the current tensions and remain ready to respond"

We are closely monitoring current market tensions and remain ready to respond if necessary to preserve price and financial stability in the euro area. The euro area banking sector is resilient, with capital and liquidity needs well filled. Let me reassure you: we remain committed to fighting inflation and bringing it back below 2%," said Christine Lagarde, President of the ECB.

Christine Lagarde: "We are monitoring the current tensions and remain ready to react"

Agnieszka Kumor

► Read also Will the Silicon Valley Bank crisis hinder the fight against inflation?

The ECB raises its key interest rates by half a point

The ECB raises its key interest rates by half a point

"We are monitoring the current tensions and remain ready to respond"

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