ECB raises key interest rate to 3.75 percent

The ECB raises the key interest rate (interest rate for main refinancing operations) by 0.25 percentage points to 3.75%. This is the seventh increase since summer 2022 and the ECB's aim is to further curb real demand by making loans more expensive. A difficult undertaking, as the interest rate hikes have a delayed effect. It is estimated that it will take between 6 and 18 months for today's interest rate hike to be fully reflected in the real economy. Interest rates for home loans and consumer loans are at a very high level and are expected to remain at this level this year. Inflation for the eurozone was published this week on Tuesday and still stands at +7.0%. The US Federal Reserve also raised interest rates yesterday. The ECB's next interest rate decision will be on June 15.