The European Central Bank confirmed its intention to increase interest rates at its policy meeting next month and slashed its growth outlook.
- After its recent monetary policy meeting, the Governing Council announced the plans to raise its key interest rates by 25 basis points at the upcoming meeting in July.
- The ECB anticipates a further hike at the September meeting but noted that the level of increase would depend on the evolving trend of the medium-term inflation forecast.
- The interest rates on the main refinancing operations, marginal lending facility, and deposit facility will remain unchanged at 0.00%, 0.25%, and -0.50%, accordingly.
The ECB also cut its growth forecasts and upwardly revised its inflation outlook. The annual inflation is projected to reach 6.8% in 2022, dropping to 3.5% in 2023 and 2.1% in 2024.
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Source: European Central Bank