Photo taken on Aug. 22, 2022 shows the Euro sculpture in Frankfurt, Germany. (Xinhua/Shan Weiyi)
The larger-than-expected rate increase reflects the bank's growing concern about surging inflation in the eurozone.
FRANKFURT, Germany, Sept. 8 (Xinhua) -- The European Central Bank (ECB) on Thursday raised key interest rates by 75 basis points (bp), the second such hike after a 50 bp increase in July.
Effective Sept. 14, the interest rates on the main refinancing operations, the marginal lending facility and the deposit facility will be 1.25 percent, 1.5 percent and 0.75 percent, respectively, the ECB said at the conclusion of a Governing Council meeting here on Thursday.
The larger-than-expected rate increase reflects the bank's growing concern about surging inflation in the eurozone.
European Central Bank President Christine Lagarde speaks during a press conference in Frankfurt, Germany, on July 21, 2022. (ECB/Handout via Xinhua)
The ECB expects to raise interest rates further as "inflation remains far too high and is likely to stay above target for an extended period."
In its latest forecast for the eurozone economy, the ECB revised up its inflation projections to 8.1 percent in 2022, 5.5 percent in 2023 and 2.3 percent in 2024.
According to the bank, recent data showed a substantial slowdown in economic growth in the eurozone. Stagnation is projected for the rest of this year and for the first quarter of 2023.
Accordingly, the economic growth forecast for the eurozone has been revised down markedly. The bank now expects growth of 3.1 percent in 2022, 0.9 percent in 2023 and 1.9 percent in 2024.
Photo taken on Jan. 1, 2022 shows the headquarters of the European Central Bank illuminated to celebrate the 20th anniversary of Euro banknotes and coins in Frankfurt, Germany. (Xinhua/Lu Yang)■
