ECB increases interest rates by 25 basis points

by Richard Kilner

Story link: ECB increases interest rates by 25 basis points

The European Central Bank (ECB) yesterday revealed its decision regarding monetary policy in the eurozone.

Effective from 9 July, the lowest possible bid rate on refinancing operations of the Eurosystem rises to 4.25%, an increase of 25 basis points.

On the same date the marginal lending facility interest rate also increases by 25 basis points, to 5.25%.

Also increased by the same amount is deposit facility interest rate which will stand at 3.25% on 9 July.

The increase in interest rates across the board is seen as a move by the ECB to try and head off inflationary pressures.

Soaring food and energy prices have meant that countries across the world have been subject to higher prices in key areas.