ECB raises rates by 50 basis points, as inflation trumps financial stability fear

March 16, 2023 9:22 AM EDT

By Geoffrey Smith -- The European Central Bank raised its key interest rates by 50 basis points on Thursday, pressing on with its fight to tame inflation despite signs of stress in the financial system resulting from earlier rate hikes.

The interest rate on the ECB's main refinancing operations will rise to 3.50%, while the deposit facility rate will rise to 3.0% and the marginal lending rate to 3.75%. The bank also said it will continue to reduce its balance at the current rate of around 15 billion euros a month.

"Inflation is projected to remain too high for too long," the ECB said in a statement accompanying its decisions.

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