After Thursday's hike, the rate on the ECB's little-used weekly cash auctions will rise to 3.75% while overnight loans from the central bank will now cost 4.0%. (Reporting by Francesco Canepa; Editing by Catherine Evans)
Messaging: francesco.canepa.thomsonreuters.com@reuters.net)) FRANKFURT, May 4 (Reuters) - The European Central Bank
eased the pace of its interest rate hikes on Thursday and kept
its options open on future moves as it continues its fight
against stubbornly high inflation in the euro zone.
The 25-basis-point increase to the ECB's three policy rates
was the smallest since it started lifting them last summer and
the central bank did not explicitly commit to further hikes.
"The Governing Council’s future decisions will ensure that
the policy rates will be brought to levels sufficiently
restrictive to achieve a timely return of inflation to the 2%
medium-term target," the ECB said.
The ECB's seventh consecutive hike brings the rate it pays
on bank deposits, the benchmark for borrowing costs in the
20-country euro zone, to 3.25% from 3.0% .
That was in line with analysts' expectations and with the
U.S. Federal Reserve's rate decision on Wednesday.
The ECB is trying to bring inflation in the currency bloc
back to its 2% target after it briefly touched double digits
last year, fuelled by higher energy costs, margin expansion by
companies and a tight labour market, among other factors.
ECB President Christine Lagarde will hold a press conference
starting at 1245 GMT.
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