The Governing Council decided to raise the three key ECB interest rates by 50 basis points. Accordingly, the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will be increased to 2.50%, 2.75% and 2.00% respectively. The Governing Council signaled that interest rates would be raised further as the November inflation rate of 10.1% was far from the medium-term inflation target of 2%. The euro area economy may contract in the current quarter and the next quarter, owing to the energy crisis, high uncertainty, weakening global economic activity and tighter financing conditions. On the other hand, the expected recession is likely to be relatively short-lived and shallow, and the economy expected to grow by 3.4% in 2022, 0.5% in 2023, 1.9% in 2024 and 1.8% in 2025.

Source: European Central Bank
Post by: Republic of Türkiye Ministry of Trade