ECB raises interest rate to 4% – Kommersant

The Board of Governors of the European Central Bank at its meeting on June 15 raised the base rate by 25 basis points to 4%. The deposit rate is up to 3.5%. For short-term loans – up to 4.25%. These rates will come into effect on June 21st.

IN message on the website of the regulator, the decision to raise the rate is explained by the fact that now inflation in the Eurozone is declining, but it will be “too high” for “too long time”.

The ECB’s target for inflation is 2%. Inflation forecast excluding energy and food prices has been revised. The indicator in 2023 will be 5.1%, in 2024 – 3%, in 2025 – 2.3%. Eurozone economic growth forecast lowered. It is expected that in 2023 the economy will grow by 0.9%, in 2024 and 1.5% in 2025 by 1.6%.