The ECB raised interest rates by 50 basis points to zero last month as inflation fears mounted, surprising investors with an unexpectedly large hike after the central bank had guided for a smaller, 25 basis point move.
“Inflationary pressures were judged to have intensified,” the accounts, released on Thursday, showed. “Continued anchoring of inflation expectations was dependent on the Governing Council acting decisively on the worsening inflation outlook.”
The ECB is expected to lift rates by another 50 basis points next month, even as the risk of a recession is rising, as inflation is now nearing double digit territory and looming gas shortages could push prices even higher.
Source: Economy - investing.com
