During today's meeting of the European Central Bank, a historic decision was made – for the first time in 11 years, the regulator raised the base interest rate by 50 basis points at once: from 0% to 0.5%. The deposit rate was increased to zero (from minus 0.5%), the rate on short-term loans was increased to 0.75%. Thus, the regulator intends to fight record inflation, the level of which was 8.6% in June. A further increase in the ECB's key rate is expected in September. Here you can see the European central bank following the global trend: the Bank of England, for example, has already raised its interest rate 6 times over the past six months. And the key rate of the US Federal Reserve System may reach 3.5% by the end of the year. At the same time, the ECB understands that a change in the course of monetary policy is associated with the risk of recession against the background of the war in Ukraine. Additional pressure on the European economy is exerted by the government crisis in Italy: the resignation of Mario Draghi, who previously headed the ECB, led to a drop in the main index of the Milan Stock Exchange. Moreover, due to political uncertainty, the cost of servicing Italy's national debt will increase.
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