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.