ECB announces 0.25% interest rate hike

The Governing Council of the ECB has increased the interest rate on the marginal lending facility by 25 basis points to 3.75%, with effect from June 15

The European Central Bank raised its main interest rate by 0.25% to 2.75% today in a move that had been expected by economists, although some had predicted a 0.5% hike.

Martin van Vliet, of ING Bank, said the key question now was whether the ECB would signal its intention to speed up its gradual process of normalising interest rates.

The Governing Council of the ECB increased the interest rate on the marginal lending facility by 25 basis points to 3.75%, with effect from June 15

The minimum bid rate on the main refinancing operations of the Eurosystem will be increased by 25 basis points to 2.75%, starting from the operation to be settled on June15, the ECB said.

The interest rate on the deposit facility will be increased by 25 basis points to 1.75%, with effect from the same date.