Lagarde goes ahead with the monetary tightening – Corriere.it
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Respecting the forecasts issued the day before, the ECB decided to increase interest rates in the euro area by 25 cents, bringing the reference rate to 3.75%. This is the seventh increase in just 10 months, after in July 2022, after years of negative rates, the ECB had raised the cost of money for the first time from zero to 0.5%. The rate hike that has taken place in recent months is unprecedented since the existence of the single European currency and has brought the cost of money back to levels not touched since 2008 (with repercussions on variable rate mortgages). Today’s decision by the ECB Board follows by just 24 hours the similar choice to increase rates approved on Wednesday 3 May by the Fed, which with a similar decision to raise interest rates in the United States brought the cost of money to a maximum by 5-5.25%.
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