Business

ECB surprises markets with half-point rate hike

Frankfurt: The European Central Bank lifted its key interest rates by a surprise 50 basis points on Thursday, its first hike since 2011 and more than expected as the eurozone grapples with rampant inflation and a looming energy crisis.

The hike lifts the ECB’s deposit facility out of negative territory for the first time in eight years, to zero percent. The rate on the main refinancing operations climbs to 0.50 percent and on its marginal lending facility to 0.75 percent.

Future rate hikes “will be appropriate”, the ECB said, while the size of the moves would be “data-dependent”.

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