ECB raises interest rates by 75bps as widely expected. The main refinancing, marginal lending, and deposit rates are 2.00%, 2.25%, and 1.50% respectively, with effect from November 2. The central bank also maintains tightening bias, and said, it “expects to raise interest rates further, to ensure the timely return of inflation to its 2% medium-term inflation target.”
Future policy rate path will be based on the “evolving outlook for inflation and the economy”, and follow its “meeting-by-meeting approach.
Also, the terms and conditions of the TLTRO III refinancing operations are changed, and “recalibrated” to ensure consistency with broader monetary policy normalization process.
