Sumary of The ECB raises interest rates by half a percentage point to 0.50%:
- Anti-fragmentation mechanism In addition to the rate hike, the ECB decided to approve the Transmission Protection Instrument (TPI) known as the anti-fragmentation mechanism to prevent risk premiums from skyrocketing in some countries south of the euro.
- The new TPI instrument is necessary to support the effective transmission of monetary policy, says the ECB.
- Christine Lagarde – EFE After the meeting of the Governing Council, the ECB reported that it is also increasing the credit facility by 50 basis points, which it lends to banks overnight, up to 0.75%, and the facility for deposit, to which the excess reserves are remunerated for one day, at 0%.
- As long as the ECB raises its interest rates, the anti-fragmentation mechanism will ensure the smooth transmission of its policy orientation to all the countries of the euro area.
- The European Central Bank (ECB) decided this Thursday to raise interest rates by half a percentage point, to 0.50%, the first rise in eleven years and the largest since 2000, and approved an instrument to prevent premiums from skyrocketing.