The European Central Bank raised its key interest rates by 75 basis points on Thursday, in line with expectations, and signaled that policymakers look forward to hike rates more in the months ahead as inflation is expected to stay high for an extended period.
The Governing Council, led by ECB President Christine Lagarde, raised the main refinancing rate to 2.00 percent from 1.25 percent. The deposit facility rate was hiked to 1.50 percent from 0.75 percent. The marginal lending facility rate was lifted to 2.25 percent from 1.50 percent. The previous change in Eurozone interest rates was a 75 basis points hike in early September. "With this third major policy rate increase in a row, the Governing Council has made substantial progress in withdrawing monetary policy accommodation," the central bank said in a statement. "The Governing Council took today's decision, and expects to raise interest rates further, to ensure the timely return of inflation to its 2 percent medium-term inflation target."
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.