ECB raises interest rates to all-time high

FRANKFURT - The European Central Bank (ECB) on Thursday lifted key interest rates by another 0.25 percentage points, putting the rates to all-time high.

With this hike, the interest rates on the main refinancing operations, on the marginal lending facility and on the deposit facility will be increased to 4.5 percent, 4.75 percent and 4 percent, respectively, the bank said.

"Based on its current assessment, the Governing Council considers that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target," it said in a statement.

The latest economic projections in September by the ECB expect the eurozone's average inflation to be 5.6 percent in 2023, 3.2 percent in 2024 and 2.1 percent in 2025.

The projections for inflations in 2023 and 2024 have been revised up from the previous projections of the ECB.

Commenting on the trend of inflation, the bank rarely made any change, saying that "inflation continues to decline but is still expected to remain too high for too long."

However, the ECB has significantly lowered its economic growth projections, forecasting the eurozone economy to grow by 0.7 percent in 2023, 1 percent in 2024 and 1.5 percent in 2025.