Central Banks
ECB Doubles Rate to Most in Over a Decade Despite Recession Fear
- Deposit rate raised to 1.5% from 0.75%, as economists expected
- Officials also move to address lenders’ excess liquidity
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The European Central Bank doubled its key interest rate to the highest level in more than a decade and signaled it’s making progress in its battle with record inflation, just as the likelihood of a recession mounts.
Officials in Frankfurt delivered a second straight three-quarter-point hike on Thursday -- as economists expected -- while dropping a prior reference to increases continuing for “several meetings,” saying simply they expect borrowing costs to be raised “further.”