According to information posted on the “Sky News Arabia” website today, Thursday, the European Central Bank increased the interest rate by 75 basis points as anticipated in an effort to lower the excessive inflation.
This is the second time that the European Central has raised interest rates with this amount, as it was previously raised by 75 basis points in September, after announcing in July a 50 -point increase was the first in 11 years.
According to the European Central decision, interest rates on deposits increased from 0. 75% to 1. 5%, at the highest level since 2008, and the main interest on re -financing increased to 2% from 1. 25%, to reach the highest level since 2009.
According to the European Central, he anticipates greater interest at the next sessions.
The European Central faces a major challenge to reduce inflation, which has reached about 5 times, its goal of 2%, and is expected to remain above this target until 2024, which increases the risk of its entrenches at these high levels.
Numerous academics and executives in charge of monetary policy pushed the European Central Bank to keep raising interest rates sharply while maintaining high inflation rates, which peaked at 9.9% in September of last year.
In order to combat inflation, the European Central Bank raises interest rates by 75 basis points.
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