ECB raises key rates again as war-driven inflation pressure persists
TL;DR Summary
The ECB’s Governing Council hiked all three key rates by 25 basis points (to 2.25% deposit facility, 2.40% main refinancing, 2.65% marginal lending), citing inflation pressures from the war-related energy shock. Staff project headline inflation averaging 3.0% in 2026, 2.3% in 2027 and 2.0% in 2028, with growth of 0.8%, 1.2% and 1.5% respectively. The move is data‑dependent; APP/PEPP are being unwound and the Transmission Protection Instrument remains available to safeguard policy transmission.
Topics:business#economy#energy-prices#european-central-bank#inflation#interest-rates#monetary-policy
- Monetary policy decisions European Central Bank
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- ECB Set for First Hike Since 2023 as Prices Soar: Decision Guide Bloomberg.com
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