On Thursday, 21 July, the European Central Bank (ECB) raised the base interest rate, making it the first time in the last 11 years.
ECB Council decided during its meeting in Frankfurt to increase the base interest rate by 0.5 percentage points – to 0.5%.
The council also decided to increase overnight deposit rate to 0% and overnight loan rate to 0.75%. Both of these were increased by 0.5 percentage points.
The base interest rate and overnight loan rate remained in force since 16 March 2016. The overnight deposit rate remained since 18 September 2019.
The bank reported that the increase of interest rates will help battle high inflation and will ensure demand meets the bank’s medium-term inflation goals.
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