ECB Raises Interest Rates by 25bps Amid ‘Too High’ Inflation, ‘No Pause,’ Lagarde Says



The European Central Bank (ECB) raised its key interest rates by 25 basis points, slowing the pace from previous increases. However, as inflation in the euro area remains persistently high, future rate hikes may still be expected with the regulator insisting it will continue to seek a “timely return” to its 2% inflation target and ECB president Christine Lagarde stating that rates are not “sufficiently restrictive” yet. ECB Eases Pace of Hiking Interest Rates in the Eurozone The Governing Council of the European Central Bank (ECB) decided to raise three key interest rates by 25 basis points (bps) on Thursday. While slowing the rate hikes, the monetary authority indicated that future increases are possible as its fight to tame inflation goes on. “The inflation outlook continues to be too high for too long,” the regulator highlighted in a press release after the council’s meeting. It explained that while headline inflation has declined over recent months, underlying price pressures remain strong. The interest rates on the main refinancing operations, the marginal lending facility, and the deposit facility will be increased to 3.75%, 4.00% and 3.25% respectively, from May 10, 2023, the announcement detailed. The 25 bps raise to the policy rates is the smallest since hiking began in July 2022. At the same time, the ECB emphasized that the council’s future decisions will aim to ensure that “a timely return of inflation to the 2% medium-term target” is achieved. It also said that the “sufficiently restrictive” levels will be maintained “for as long as necessary.” ‘We Are Not Pausing, We Have More Ground to Cover,’ ECB’s Lagarde Insists The slowdown in Europe follows the U.S. Federal Reserve’s decision to increase its benchmark interest rate by the same 25bps on Wednesday, with analysts interpreting the accompanying statements as hinting that this may be the last in the Fed’s own series of hikes. However, ECB President Christine Lagarde made it clear that European interest rates are not yet “sufficiently restrictive” to bring inflation down. Speaking at a press conference after the Governing Council’s meeting in Frankfurt, she stated: We are not pausing — that is very clear. We know that we have more ground to cover. Quoted by Reuters, she insisted that the ECB is “not Fed-dependent,” dismissing the notion that if the U.S. pauses its rate hikes, the eurozone’s monetary policy regulator would have to do the same. She highlighted the “significant upside risks” to inflation that remain in the common currency area and admitted that some governors were favoring a bigger rate hike. What are your forecasts for the ECB’s next policy decisions on interest rates? Share them in the comments section below. 


Source : [ECB Raises Interest Rates by 25bps Amid ‘Too High’ Inflation, ‘No Pause,’ Lagarde Says]( by Lubomir Tassev - European Central Bank•Bitcoin News by Lubomir Tassev / May 05, 2023 logo


240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma


The purchase of digital assets is subject to a high market risk and price volatility. Changes in value can be significant and occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and returns can fluctuate both up and down, and you may not recover the amount you invested. RISK WARNING

Automata ICO Limited has a branch in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.

Automata Pay Europe Limited is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and safeguarded in line with the Financial Supervision Act. How we keep your money safe.