Do it like the Fed: ECB raises key interest rates, creates money circulation loop for big banks and corporations
globinfo freexchange Inside the storm of inflation, the European Central Bank suddenly thought that it would be a good idea to raise key interest rates for the first time in 11 years. According to Deutsche Welle (DW) [emphasis added]: The ECB raised its negative benchmark deposit rate by 50 basis points from minus 0.5% to 0%, lifting the bank's deposit facility out of negative territory for the first time in eight years. The announcement came as a surprise as the bank had initially hinted that it would hike the rate by 25 basis points only . It's remarkable that DW's analyst, Kristie Pladson, stated that " ... this is a historic decision they've taken now - first hike in eleven years, so, on that level, it's a little bit unclear exactly what effect it's going to have ... " However, one thing ECB's move will surely affect, is money access for most of the Europeans. As Pladson says: ... what we do