The European Central Bank increased the policy rate by 25 basis points from 2.40 percent to 2.65 percent.
Refinancing Interest Rate was increased to 2.65 percent, Deposit Interest Rate was increased to 2.50 percent, and Marginal Funding Interest Rate was increased to 2.90 percent.
The expectation of the markets was that interest rates would be increased. Markets have been citing rising energy costs for some time.
The European Central Bank (ECB) also increased its year-end inflation forecast from 2 percent to 2.1 percent. In the decision statement made by the ECB, it was said: “There are upside risks in inflation.” It was also emphasized that the risks to economic growth are downward.
