On Thursday, The European Central Bank (ECB) announced an interest rate hike of 25 basis points to 3.75%, CNBC reports.
Despite a decline in inflation from 6.1% in May to 5.5% in June, the rate remains significantly above the ECB’s target of 2%.
The ECB also reduced the remuneration of minimum reserves to 0%, which menas that banks will not earn any interest on their reserves at the ECB.
The central bank did not provide any guidance on its next moves, but raised the possibility of a potential pause in September.
