ECB follows Fed and lifts interest rates by 75bps

ECB’s 2nd rate hike

The European Central Bank (ECB) battles high inflation and a looming recession by raising its benchmark interest rates by 75bps during its October meeting. The main interest rate was lifted from 1.25% to 2%. This follows a similar move as in September and raises borrowing costs to the highest level since 2009. 

⚠️ The #ECB lifted its interest rates by 75 bps during its October meeting, following Fed's footsteps.

— Investro.com (@investrocom) October 27, 2022

The current refinancing rate is 2%, the deposit facility rate is 1.5%, and the marginal lending rate is 2.25%. Moreover, the central bank anticipates to raise interest rates further until the inflation is under control. Future rate hikes will be based on how the economy and inflation are changing, meeting by meeting.