European Central Bank meeting —

At its 15 December 2022 meeting, the European Central Bank raised its policy rate from 1.50% to 2.00%.

Decision

hike — 1.50% to 2.00%

Key passages

The Governing Council today decided to raise the three key ECB interest rates by 50 basis points and, based on the substantial upward revision to the inflation outlook, expects to raise them further.

Rate hike decision and explicit link to higher inflation outlook signal ongoing tightening.

In particular, the Governing Council judges that interest rates will still have to rise significantly at a steady pace to reach levels that are sufficiently restrictive to ensure a timely return of inflation to the 2% medium-term target.

Clear guidance that rates need to rise 'significantly' at a 'steady pace', reinforcing hawkish stance.

Meeting documents

Background reading

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