ECB raises rates to seven-year high point
The European Central Bank raised its key interest rates by a quarter of a percentage point as expected on Thursday, to the highest level for seven years.
By Agencies |
FRANKFURT: The European Central Bank raised its key interest rates by a quarter of a percentage point as expected on Thursday, to the highest level for seven years.
The ECB, which last raised its central "refi" refinancing rate by 0.25 percentage point to 4.0 per cent in June 2007, raised the rate again to 4.25 per cent at its regular monthly policy-setting meeting in Frankfurt.
It was the ninth rate increase since December 2005 and brought eurozone borrowing costs to their highest level since September 2001.
The "refi" is the rate at which the ECB provides the bulk of liquidity for the banking system via its regular weekly refinancing operations.
But there are also two other key interest rates: the rate on the deposit facility, which banks may use to make overnight deposits with the Eurosystem, and the rate on the marginal lending facility, which offers overnight credit to banks from the Eurosystem.
These were raised to 3.25 percent and 5.25 per cent respectively. Following is a table showing the development of all three key rates since the ECB took over the monetary policy reins for the 15-country eurozone in January 1999, when the core rate stood at 3.00 per cent.
The ECB, which last raised its central "refi" refinancing rate by 0.25 percentage point to 4.0 per cent in June 2007, raised the rate again to 4.25 per cent at its regular monthly policy-setting meeting in Frankfurt.
It was the ninth rate increase since December 2005 and brought eurozone borrowing costs to their highest level since September 2001.
The "refi" is the rate at which the ECB provides the bulk of liquidity for the banking system via its regular weekly refinancing operations.
But there are also two other key interest rates: the rate on the deposit facility, which banks may use to make overnight deposits with the Eurosystem, and the rate on the marginal lending facility, which offers overnight credit to banks from the Eurosystem.
These were raised to 3.25 percent and 5.25 per cent respectively. Following is a table showing the development of all three key rates since the ECB took over the monetary policy reins for the 15-country eurozone in January 1999, when the core rate stood at 3.00 per cent.
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