ECB Raises Benchmark Rate by 75bps and Tones Down Long-Term Refinancing Operations
On Thursday, the European Central Bank (ECB) announced the central bank’ s third consecutive benchmark bank rate increase this year, raising the rate by 75 basis points (bps). In addition to the rate hike, the ECB changed the central bank’ s targeted longer-term refinancing operations terms and conditions noting that they need to be “recalibrated.” ECB Hikes Rate in Attempt to Curb Red-Hot Inflation Eight days ago, the European Union’s statistics office Eurostat published the latest inflation report for September. Eurostat’s records indicated that Euro area annual inflation jumped to 9.9% in September, the highest in 40 years. A week later, the European Central Bank (ECB) and the central bank’ s president Christine Lagarde hiked up the benchmark bank rate for the third time in a row. We’ve just taken our latest monetary policy decisions, determining what’s needed to achieve stable prices in the euro area. Tune in to #TheECBPodcast to hear President Christine @Lagarde present the d...