1st LD: ECB raises rates by 50 bps

FRANKFURT, Feb. 2– As expected, the European Central Bank on Thursday increased interest rates by 50 basis points and sent out a dovish message about the outlook for future rate hikes. “In view of the underlying inflation pressures, the Governing Council intends to raise interest rates by another 50 basis points at its next monetary policy meeting in March and it…

FRANKFURT, Feb. 2 (Xinhua) — As expected, the European Central Bank (ECB) on Thursday increased interest rates by 50 basis points (bps) and sent out a dovish message about the outlook for future rate hikes.

“In view of the underlying inflation pressures, the Governing Council intends to raise interest rates by another 50 basis points at its next monetary policy meeting in March and it will then evaluate the subsequent path of its monetary policy,” the bank said in a statement.

The interest rates on the main refinancing operations and on the marginal lending facility and the deposit facility will be increased to 3 percent, 3.25 percent and 2.5 percent, respectively.

ECB President Christine Lagarde said in December that the bank will continue hiking rates by 50 bps. Enditem