European Central Bank meeting —

At its 21 July 2022 meeting, the European Central Bank raised its policy rate from -0.50% to 0.00%.

Decision

hike — -0.50% to 0.00%

Key passages

The Governing Council judged that it is appropriate to take a larger first step on its policy rate normalisation path than signalled at its previous meeting.

Unexpected frontloading; indicates willingness to act forcefully.

It will support the return of inflation to the Governing Council’s medium-term target by strengthening the anchoring of inflation expectations and by ensuring that demand conditions adjust to deliver its inflation target in the medium term.

Explicitly links hike to anchoring expectations and demand adjustment.

Meeting documents

Background reading

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