The European Central Bank raised its three policy interest rates by 50 basis points (bps) on July 21, the first hikes since 2011. Ahead of its June 9 meeting, the central bank had signaled a rate increase of 25 bps, but decided instead to accelerate its monetary tightening and push its nominal deposit rate up to 0%. In its July statement, the bank said it would continue to raise interest rates in coming meetings as it “normalizes” policy.
Below is a brief quick-take analysis from economist Robert Lind on the ECB’s decision to raise interest rates for the first time in more than a decade.
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