At noon on Thursday, the European Central Bank (ECB) confirmed that it would stick to its tactics to tackle inflation by announcing a 50 basis point hike. Despite concerns and developments in the banking industry, the ECB believes that inflation will remain at high levels for some time and therefore, immediate measures are needed to de-escalate it.
The ECB's Board of Directors is closely monitoring developments and is prepared to intervene to ensure price stability and financial stability in the eurozone, if necessary.
The ECB also reassures the public that the banking sector in the euro area is strong and resilient, with sufficient capital adequacy and liquidity. Additionally, there is a full toolkit available to support the eurozone's financial system to maintain the smooth transmission of monetary policy.
We raised interest rates by 0.5 percentage points.— European Central Bank (@ecb) March 16, 2023
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