On the 21st, the European Central Bank announced that the three key interest rates were raised by 50 basis points and the deposit mechanism interest rate was raised to 0%, which marked the end of the negative interest rate era in Europe in the past decade.
After the outbreak of the European debt crisis in 2009, the European Central Bank has done a lot of "save" work. In order to stimulate the economy, in July 2012, the European Central Bank lowered the deposit mechanism interest rate to 0%. Since then, the European Central Bank has implemented quantitative easing monetary policy. In June 2014, the European Central Bank lowered the deposit mechanism interest rate to negative 0.1%, and began to enter the negative interest rate stage. Since then, the European Central Bank has cut interest rates several times, and the deposit mechanism interest rate has reached negative 0.5%.
The ECB raises interest rates this time ended the negative interest rate era in Europe in the past decade.
analysis believes that the new crown epidemic has caused a mismatch between supply and demand in the terminals of the European industrial chain, and demand-oriented inflation has emerged. Now, with the intensification of the Russian-Ukrainian conflict, global energy and food prices have risen, and are increasingly shifting towards cost-driven inflation. Against this backdrop, the European Central Bank had to "take action" to raise interest rates.
Source: CCTV News
