Central Banks
ECB Vows More Hiking to Come After Slowing Tightening Pace
- Deposit rate raised to 3.25% from 3%, as economists predicted
- ECB also said it will stop APP bond reinvestments as of July
The European Central Bank headquarters in Frankfurt.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank delivered the smallest interest-rate increase yet in its battle with persistently strong inflation but insisted that the move won’t be the last.
Officials raised the deposit rate by a quarter-point to 3.25%, following three steps of double that size. The announcement matches the expectations of traders and most economists, leaving the rate at its highest level since 2008.