The European Central Bank (ECB) following a meeting on Thursday raised interest rates for the first time in 11 years, immediately by 50 basis points (bp).
The base interest rate on loans was raised to 0.5%, the rate on deposits – to zero, the rate on margin loans – to 0.75%.
„The Governing Council of the ECB considered it appropriate to take a larger first step in the normalization of interest rates than the one signaled at the previous meeting,” the ECB said in a press release.
In addition, the regulator announced that it is launching a new bond buyback program to limit fragmentation in the eurozone.
The ECB said in a statement that the regulator plans to further normalize interest rates.