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ECB Hikes Rates Again As Lagarde Leaves Door Open For Pause Ahead

By Jyotsna V   ✉   | Published:   | Follow Us On Google News
rttnewslogo20mar2024

The European Central Bank raised its interest rates on Thursday, as expected, for the ninth policy session in a row citing the prospect of inflation in the euro area staying too high for too long, while the bank chief Christine Lagarde signaled that policymakers are having an open mind regarding future rate decisions, suggesting that a pause may be on the horizon.

The Governing Council, led by ECB President Lagarde, increased the main refinancing rate, or refi, by 25 basis points at 4.25 percent.

The deposit facility rate was raised to 3.75 percent, which is the highest level in 22 years, and the lending rate was lifted to 4.50 percent.

"We are deliberately data dependent, we have an open mind as to the decisions in September and in subsequent meetings," Lagarde said during the post-decision press conference.

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