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ECB raises base rate by 25 basis points to 4.5% per annum

According to the report, the European Central Bank staff have lowered their economic growth projections significantly, expecting the euro area economy to expand by 0.7% in 2023

MOSCOW, September 14. /TASS/. The European Central Bank (ECB) decided to raise three key interest rates by 25 basis points (bp), according to a statement issued following a meeting of the regulator's Governing Council.

"The Governing Council decided to raise the three key ECB interest rates by 25 basis points. Accordingly, 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 4.50%, 4.75% and 4.00% respectively, with effect from 20 September 2023," the statement said.

According to the statement, "The Governing Council stands ready to adjust all of its instruments within its mandate to ensure that inflation returns to its 2% target over the medium term and to preserve the smooth functioning of monetary policy transmission."

"With the increasing impact of this tightening on domestic demand and the weakening international trade environment, ECB staff have lowered their economic growth projections significantly. They now expect the euro area economy to expand by 0.7% in 2023, 1.0% in 2024 and 1.5% in 2025," the report said.