The European Central Bank has raised interest rates to 1.25% in an unprecedented move, up 75 basis points.
In a statement today, the ECB said it had "significantly revised up their inflation projections", now expecting it to average 8.1% in 2022, 5.5% in 2023 and 2.3% in 2024. As inflation has continued to soar across the continent, hitting 9.1% in August, policymakers have identified it as their chief concern. The central bank previously hiked interest rates by 0.5% from zero in July. The ECB also said that despite a rebound in the first half of this year, "recent data point to a substantial slowdown in euro area economic growth," with the economy now predicted to stagnate for the res...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes