The European Central Bank (ECB) holds a monetary policy meeting on Thursday from which a further interest rate hike, which analysts anticipate will be 25 basis points, could come out.
Earlier in May, the institution led by Christine Lagarde raised rates by 25 basis points to 3.75 per cent, an easing backed by a majority of Council members.
Prior to that, the ECB had raised interest rates by 50 basis points.
The interest rate on the main refinancing operations rose to 3.75%, the deposit facility rate went to 3.25% and the interest rate on the marginal lending facility rose to 4%, the highest level since October 2008.
However, according to the minutes of the last meeting, some members of the ECB’s Governing Council advocated a further hike by 50 basis points to control inflationary risks, a decision that “would demonstrate more clearly the determination […] to achieve price stability in the face of higher and more persistent inflation”.
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