The European Central Bank (ECB) ended the era of negative interest rates in the euro zone on Thursday with a more than expected 0.50 point hike, to mark its determination to fight galloping inflation and put end to a decade of easily accessible money in the euro zone.
The main interest rate thus goes from zero, where it has been camped since 2016, to 0.50%, while that taxing part of the bank liquidities not distributed in credit, negative since 2014, rises from -0.50% to zero. .
The ECB must however be careful at the same time not to aggravate the economic crisis which is raging in a euro zone already weakened by energy problems and the open political crisis in Italy.
The geopolitical context complicates the situation
By raising the cost of credit, for the first time since 2011, the ECB will follow in the footsteps of other central banks around the world.
The US Federal Reserve has been raising interest rates since March and its range for the federal funds rate, now between 1.5% and 1.75%, could be raised by 75 basis points at the end of July.
In the euro zone, the gas crisis complicates the task of the ECB.
The Nord Stream gas pipeline linking Russia to Germany certainly restarted Thursday after ten days of maintenance, but at a reduced flow compared to that preceding the work and which itself represented 40% of capacity since mid-June.
A complete stoppage of gas deliveries by Moscow would plunge the euro zone into recession and a too rapid rise in rates would worsen the situation.
