Central Banks
ECB Hikes by Half Point as Lagarde Warns of More Such Moves
- Deposit rate raised to 2% from 1.5%, as economists expected
- Officials unveil key principles for quantitative tightening
This article is for subscribers only.
The European Central Bank increased interest rates by a half-point, with President Christine Lagarde telling investors to prepare for a long-running campaign of similar moves to quell the worst inflation in the history of the euro.
After successive hikes of 75 basis points, the ECB lifted the deposit rate more slowly on Thursday, to 2%, as economists expected. Pledging to push borrowing costs “significantly” higher, officials widened efforts to tame prices with a decision to shrink their €5 trillion ($5.3 trillion) bond portfolio.