ECB raises interest rates by 25 bps to 4.25%

July 27, 2023 (MLN): European Central Bank (ECB) on Thursday increased the benchmark refinancing interest rate by 25 basis points to 4.25%.

This hike came largely in line with the market’s expectations, wherein the market participants were expecting a 25bps hike, following yesterday's U.S. FOMC decision to hike its federal funds rate by 25bps to 5.5%.

The Governing Council decided to raise all three key ECB interest rates by 25 basis points.

Accordingly, the interest rates on the marginal lending facility and the deposit facility will also be increased to 4.5% and 3.75% respectively, with effect from August 02, 2023, along with the main benchmark refinancing rate.

The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 17:45 PST today (in 30 mins).

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