Analytical Reviews

Get the latest economic news from ForexMart, including updates on the financial market, central bank policy announcements, financial indicators, and other relevant news which can impact the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

The ECB raised key interest rates by 50 bp as expected


December, 15 2022
watermark Economic news

The Governing Council of the European Central Bank (ECB) at a meeting on Thursday raised the base interest rate by 50 basis points – from 2% to 2.5% per annum. The regulator believes that it is necessary to further raise the rate to achieve the inflation target of 2%. These decisions will depend on the forecast for inflation and the economy.


The ECB has raised all three key rates by 50 basis points: the interest rate on the main refinancing operations and the interest rates on the margin credit line and deposit line will be increased to 2.5%, 2.75% and 2%, respectively, from December 21, 2022.


The increase in rates is the main tool of the European central bank's fight against high inflation. Moreover, the regulator intends to begin reducing the asset repurchase program in early 2023.


The ECB promises to adhere to a «moderate and predictable» approach to reducing the amount of assets on the balance sheet. Most likely, this will mean that the reduction of the balance sheet will occur not due to the sale of assets, but due to the refusal of the Central Bank from reinvestment of proceeds from redeemable securities.


More precise parameters of the «quantitative tightening» plan may be made public following the results of the meeting, which will not be accompanied by quarterly economic forecasts of the ECB, that is, on February 2.


コメントする

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.
Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.