-MAIN REFINANCING OPERATION RATE-
source: European Central Bank
On the 27th of October, the Main Refinancing Operations Rate was hiked by 0.75 to 2.00 percent. This matched the market expectations as well as the 0.75 percent hike at the September meeting.
This is the third consecutive rate hike and the Governing Council commented that higher rates are to be expected. Future hikes are made on a meeting-by-meeting approach.
Principal payments from maturing PEPP securities will be reinvested until at least the end of 2024.
The next meeting is on Thursday the 15th of December and the long term outlook is for higher rates.
In the Euro Area, the benchmark interest rate is set by the Governing Council which consists of six members from the Executive Board plus governors of the national central banks from the nineteen countries using the euro.
-
-GOVERNING COUNCIL STATEMENT HIGHLIGHTS (OCTOBER)-
Raised the three key ECB interest rates by 75 basis points.
…third major policy rate increase in a row…substantial progress in withdrawing monetary policy accommodation.
…expects to raise interest rates further, to ensure the timely return of inflation to its 2% medium-term inflation target.
…future policy rate path (decision) on the evolving outlook for inflation and the economy, following its meeting-by-meeting approach.
…policy is aimed at reducing support for demand and guarding against the risk of a persistent upward shift in inflation expectations.
…decided to adjust the interest rates applicable to TLTRO III from 23 November 2022 and to offer banks additional voluntary early repayment dates.
-
-ECB PROJECTION HIGHLIGHTS (SEPTEMBER)-
The BoE publishes the Monetary Policy report every quarter.
Changes in Real GDP - September Projection (Projection is annualised - quarterly multiplied by four)
2022 at 3.1 percent (2.8 in July)
Keep reading with a 7-day free trial
Subscribe to Jeepson Trading to keep reading this post and get 7 days of free access to the full post archives.