The European Central Bank raised its benchmark interest rate to a historic high.
The European Central Bank (ECB) at its meeting on July 27 raised the benchmark interest rate by 25 points to 4.25% per annum, repeating its historic high, the regulator said.
The interest rate on the main refinancing operations, on the margin loan and deposit program, the European Central Bank will raise to 4.25%, 4.5% and 3.75%, respectively. This will take place on August 2, the regulator specified.
The ECB added that inflation in the eurozone is slowing, but it will be too high for a long time to come. The bank's Governing Council plans to ensure that the rate returns to the medium-term target of 2% per year in a timely manner.
In addition, the board intends to reinvest principal payments on securities that were bought under the PEPP program by the end of next year.
Earlier, the US Federal Reserve also raised the benchmark rate.