ECB has raised a discount rate up to 4,25 %
19 July 2008The European central bank (ECB) has raised a discount rate on 0,25 percentage items. Thus, the parameter has made 4,25 % annual. Such decision was accepted today, on July, 3rd, at session of advice of managing directors of bank.
Decision of ECB has coincided with expectations of analysts, who predicted, that the bank will raise the rate of refinancing on 0,25 percentage items - up to 4,25 % annual.
More than for a year the rate was kept at the level of 4 %. However, the president of Bank has for many times declared that the bank had to solve the problem of struggle against inflation, even in detriment of economic growth.
Let’s remind that ECB’s previous session took place on June, 5th, 2008, and the discount rate has been left at the level of 4 % annual.
According to published on June, 30th, preliminary data of Eurostat, inflation in Euro zone of euro is expected at the level of 4 % in annual calculation. Thus ECB’s reference point on inflation in Euro zone makes not above 2 %.
In experts’ opinion, increase of the European discount rate will inevitably lead to the further falling of dollar and rise in prices on raw actives. Now the difference between rates in the Europe and the USA will make 2,25 %, that, most likely, will serve as a principal cause for weakness of US currency.
