European Central Bank Raise Interest Rates, But Start To Slow Down

Armfalcon.com, FRANKFURT — The European Central Bank (ECB) raised interest rates by 25 basis points to 3.25 percent on Thursday (4/5/2023). This is in accordance with the estimates of several analysts.

Quoted from Zawya, the central bank for 20 European countries, has raised interest rates by 375 basis points since July last year. This became a very fast monetary tightening effort.

However, the ECB’s interest rate hikes are starting to slow down. Previously, the ECB had raised interest rates by 50 basis points on three occasions in a row.

This was done after eurozone banking data showed a drastic decline in demand for credit in the last decade. At this time, the ECB has not provided any guidance on its future policy steps.

“The Governing Council will continue to follow a data-driven approach to determine the appropriate level and duration of restrictions,” the ECB said in a statement.