ECB Raises Key Interest Rate by 0.75%P to 1.25%... Unprecedented 'Giant Step'

ECB logo [Image source=Reuters Yonhap News]

[Asia Economy Reporter Song Seung-seop] The European Central Bank (ECB) has taken a giant step. This decision came immediately after a big step made for the first time in 11 years.

On the 8th (local time), the ECB held a monetary policy meeting and announced that it would raise the key interest rate by 0.75 percentage points from 0.5% to 1.25%. The deposit rate and marginal lending rate were also raised by 0.75 percentage points each, reaching 0.75% and 1.5%, respectively.

Meanwhile, the ECB implemented a 0.5 percentage point rate hike on July 7, which was double the usual 0.25 percentage point increase. This move was the first of its kind in 11 years since July 13, 2011.

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