The European Central Bank lifted interest rates by 50 basis points, or half a percentage point, on Thursday, slowing the pace of increases after back to back hikes of 75 basis points. “The Governing Council decided to raise interest rates today, and expects to raise them significantly further, because inflation remains far too high and is projected to stay above the target for too long,” the ECB said. The central bank also said it would not reinvest all of the principal payments from maturing securities. The decline will amount to €15 billion per month on average until the end of the second quarter of 2023 and its subsequent pace will be determined over time, the ECB said.
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