European Central Bank raises rates by 25 basis points

The European Central Bank announced that it raised key rates by 25 basis points (bps) following the July policy meeting, as widely expected. With this decision, the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will be increased to 4.25%, 4.5% and 3.75%, respectively.

Report informs via FXS that in its policy statement, the ECB reiterated that future decisions will ensure that rates will be set at sufficiently restrictive levels for as long as necessary to achieve a timely return of inflation to 2% medium-term target.