The entity increased its key rates by 0.75 points. It is the third rise since July. Fear of a recession.
The European Central Bank (ECB) raised interest rates again on Thursday to tackle inflation in the euro zone, despite fears of a worsening outlook for the economy.
The ECB raised its key rates by 0.75 points and took them to a range between 1.5 and 2.25%. This is the third consecutive rate hike since Julywhich is in tune with the policy of other central banks, such as the US Federal Reserve.
The decision raises questions about how far it will go now that a recession seems imminent on the continent.
The ECB also announced that it will tighten the conditions for granting loans at a very advantageous rate for banks.
“Given the unexpected and exceptional acceleration in inflation,” the TLTRO lending facility needs to be “recalibrated,” the ECB said in a statement.
The increase in prices in the eurozone was close to 10% year-on-year in September, five times more than the ECB target of a 2%.
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