ECB, anti-inflation tightening continues: rates rise by 50 points. And Frankfurt is preparing an equal hike in March

MILAN – There European Central Bank proceeds as planned in its anti-inflation monetary tightening. As expected on the eve of the board of BCE it raised rates by a further 50 points, bringing the rate on major refinancing to 3%, that on deposits to 2.50%, and that on marginal loans to 3.25%. But more importantly, the board has already given indications for a new increase of 50 points in the March meeting.

“In the light of underlying inflationary pressures”, the Governing Council of the ECB intends to raise interest rates by another 50 basis points at the next monetary policy meeting in March, to then “evaluate the subsequent evolution of its monetary policy”. This is what can be read in the note released by Eurotower at the end of the meeting. “Keeping interest rates at restrictive levels”, underlines the press release, “will reduce inflation over time by curbing demand and will also protect against the risk of a persistent increase in inflation expectations. In any case, even in In the future, the Governing Council’s decisions on key rates will be data-driven and reflect an approach whereby these decisions are made on a case-by-case basis at each meeting.”