The European Central Bank raised interest rates by 0.75 points.
The principal rate rises to 2%, the deposit rate to 1.5% and the marginal lending rate to 2.25%.
The ECB expects to implement further increases in interest rates
, reads the press release issued at the end of the Governing Council's monetary policy meeting in which it is specified that decisions will be taken at each meeting from time to time.
The Governing Council of the ECB "has decided to modify the terms and conditions applied to the third series of targeted longer-term refinancing operations", the so-called Tltro, and will modify the interest rates applicable to Tltro3 starting from 23 November 2022 and to offer banks additional dates for voluntary early repayment of the amounts.
This was announced by the ECB in a note.
The ECB also decided "to set the remuneration of the compulsory reserves held by credit institutions with the Eurosystem at the rate of the ECB on deposits with the central bank, in order to better align this remuneration with the conditions of the money market".
The ECB "intends to continue to reinvest, in full, the principal repaid on the maturing securities" of the App securities purchase program "for an extended period of time after the date on which it began to raise the reference interest rates".
This was announced by the ECB in a note in which there are no variations on the decisions regarding quantitative easing.
Also for Pepp purchases, the ECB confirms that "it intends to reinvest the repaid capital on the securities maturing under the program at least until the end of 2024".
Stock exchange: Europe remains sluggish after the ECB, Milan -0.6%
- Old continent stock lists without major changes after the ECB communications on monetary policy, essentially discounted by the markets: the worst stock exchange is that of Paris, which gives about one point percentage, with Frankfurt down by 0.7% and Milan by 0.6% with the Ftse Mib index.
London sways on parity, doing better than the other lists until the morning even looking at the new government.
The spread between BTPs and German Bunds remains calm at 223 basis points with the yield on the Treasury product at 4.37%.
In a rather volatile climate, Saipem's run continues in Piazza Affari (+ 9% after the accounts), while Stm slips by 7% on the weak estimates for revenues and margins.