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Statement Shows Bank Expects to Raise Rates Further

ECB

ECB statement highlights:

  • "Following the raising of the deposit facility rate to above zero, the two-tier system for the remuneration of excess reserves is no longer necessary. The Governing Council therefore decided today to suspend the two-tier system by setting the multiplier to zero."
  • Future policy rate decisions will continue to be data-dependent and follow a meeting-by-meeting approach
  • Expects to raise rates further
  • PEPP reinvestments to run until at least the end of 2024

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