The decision raises the ECB’s benchmark deposit rate to 4%, up drastically from minus 0.5% just a little more than a year ago and the highest since the euro was established in 1999.
Category
🗞
NewsTranscript
00:00 The ECB raises interest rates again by a quarter of a point to 4.5%, the highest in two decades.
00:09 The measure in the midst of economic stagnation should curb inflation in the euro area. In
00:15 addition, the ECB has lowered its growth forecasts in the euro zone for the years 2023 to 2025.
00:23 Inflation continues to decline, but is still expected to remain too high for too long.
00:30 We are determined to ensure that inflation returns to our 2% medium-term target in a
00:36 timely manner. In order to reinforce progress towards our target, the Governing Council
00:43 today decided to raise the three key ECB interest rates by 25 basis points.
00:49 This is the tenth consecutive increase in the cost of borrowing, despite signs of wear
00:54 and tear in the economy. The European Commission predicts average euro zone GDP growth of 0.8%
01:00 this year, with forecasts ranging from 2.2% for Spain to -0.4% for Germany. They predict
01:07 inflation won't fall to 2.1% until 2025, with Commission President Ursula von der Leyen
01:13 identifying persistent high inflation as a great economic challenge for the bloc.
01:18 [MUSIC PLAYING]