ECB cautious, raises interest rates by 0.25%

2023-05-04T16:04:36.586Z

Highlights: The European Central Bank (ECB) raises its key rates by 0.25%. A more moderate increase compared to previous ones. Inflation is still too high and this could go on for a long time. European stock markets ended lower on Thursday, May 4, as the unsurprising conclusions of the ECB meeting did not allow investors to reverse the gloomy trend since the beginning of the week. London lost 1.10%, Paris 0.85% and Milan 0.61%, all three now close to their lowest level in a month.

Cautiously, the European Central Bank (ECB) slows the pace of its rate hikes and raises its key rates by 25 basis points. Inflation is still too high and this could go on for a long time...

ECB cautious, raises interest rates by 0.25%

Audio 01:04

Christine Lagarde, president of the European Central Bank, arrives for a press conference after a meeting of the ECB's Governing Council, in Frankfurt, Germany, Thursday, May 4, 2023. AP - Michael Probst

Text by: RFI Follow

1 min

Cautiously, the European Central Bank (ECB) slows the pace of its rate hikes and raises its key rates by 25 basis points. Inflation is still too high and this could last for a long time in the euro zone, this is what the guardians of the euro anticipate.

Advertising

In the wake of the US Federal Reserve, the European Central Bank in turn raises its interest rates by 0.25%. A more moderate increase compared to previous ones.

A monetary tightening that the boss of the ECB, Christine Lagarde, justifies by the fight against the soaring prices:

« The inflation outlook remains too high and for too long. Headline inflation has slowed in recent months, but price pressures remain high. Future decisions by the Governing Council will ensure that policy rates are reduced to sufficiently restrictive levels allowing for maximum inflation of 2%. As I said: we're on a trip, but we haven't arrived yet. »

No pause is therefore planned in the turn of the screw that the ECB intends to continue. Unlike the Fed, the US central bank, which retains the option of taking a pause on rates. But also to raise them if inflation resists.

European stock markets ended lower on Thursday, May 4, as the unsurprising conclusions of the European Central Bank meeting did not allow investors to reverse the gloomy trend since the beginning of the week. London lost 1.10%, Paris 0.85% and Milan 0.61%, all three now close to their lowest level in a month. Frankfurt held up better, but also fell 0.51%.

" READ ALSO – United States: the Fed raises its rates again to tackle inflation

Newsletter Receive all the international news directly in your mailbox

I subscribe

Follow all the international news by downloading the RFI application

Read on on the same topics:

ECB
Currencies
consumption
Economy
Finance

Source: rfi

ECB cautious, raises interest rates by 0.25%

ECB cautious, raises interest rates by 0.25%

You may like

Trends 24h

Latest