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Eurozone rates hit 7-year high



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Eurozone rates hit 7-year high

Eurozone interest rates hit a seven-year high of 4.25% yesterday, in an attempt to curb soaring inflation. ITR was the first time the European Central Bank (ECB) raised its interest rate this year.

The decision had been widely expected after data earlier this week showed rapidly rising oil prices had pushed eurozone inflation to 4% - the highest ever rate and more than double the ECB’s target of “below but close” to 2%.

The ECB also increased its marginal lending rate, at which banks can get emergency overnight loans, to 5.25% and its deposit rate to 3.25%.

The ECB’s decision to raise rates was met with approval from German finance minister Peer Steinbruck.
He said: “I am convinced that there is a high probability that we can overcome the financial turmoil during the next year or year-and-a-half. But I think worldwide inflation will affect us for a longer time.



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Ref 314575, Centre, France

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