ECB Hikes Rates to 23-year High

The European Central Bank (ECB) announced an increase in interest rates by 25 basis points, its highest level since 2000, bringing the key interest rate on refinancing to 4.25%, the marginal lending rate from the European Central Bank to 4.5%, and the deposit rate to 3.75%, in line with market expectations.

Earlier, the US Federal Reserve announced that it would raise interest rates by 25 basis points, to the highest level in more than 22 years.

According to the US “CNBC” network, the Federal Open Market Committee of the US Federal Reserve raised the interest rate by a quarter of a percentage point to a target range of between 5.25% and 5.5%.

As Federal Reserve Chairman Jerome Powell said, there is still a long way to go to return inflation to 2%, adding that reducing inflation needs limited growth and satisfaction in market conditions.

Powell indicated that it will take time for the full impact of interest increases to appear, pointing out that the United States sees the impact of tightening monetary policy on some sectors.