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ECB Raises Interest Rates in 2022

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Question

The Federal Reserve has announced raising interest rates for the Dollar in 2022 in response to rising inflation. However, it's corresponding institution the European Central Bank (ECB) has not. The yearly inflation was nearly as high in December 2021 in the EU with 5% as in the US with 7%. The ECB considers the inflation a temporary phenomenon and expects the inflation rate to fall below the target rate of 2% within months without raising interest rates for the Euro.

There is political pressure to keep the interest rates for the Euro low because of the risk that some EU member default on their debt. There is counter-pressure to keep the Euro and Dollar exchange rate stable for global trade though.

Will the European Central Bank raise interest rates in 2022?

This question will resolve as Yes If the ECB raises their "Fixed rate tenders Fixed rate" higher than 0.00 before January 1, 2023. This policy must take effect in 2022; an announcement to do so in 2023 is not sufficient. The official source is the ECB's website. FRED provides the same data with more interactive interface.

The ECB also publishes a "deposit facility" and a "marginal lending facility" rate in the short-term. These are not relevant for this question.

In case the ECB does not exist anymore and has not raised the interest rate, the question will resolve as ambiguous.

Categories:
Economy
Finance

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