ECB makes a hefty interest rate hike, złoty remains stable

The European Central Bank (ECB) has raised interest rates by 75 basis points mimicking its record increase from last month. "Inflation remains far too high and will stay above the target for an extended period," it noted. Annual inflation in the eurozone reached an all-time high of 9.9% in September.

The euro exchange rate versus the dollar declined, while the złoty remained stable after the ECB decision, Przemysław Kwiecień, chief economist of the XTB brokerage house told PAP Biznes.

The ECB also adjusted the interest rates on ultra-long loans to banks called TLTRO III credit operations. “From 23 November 2022 until the maturity date or early repayment date of each respective outstanding TLTRO III operation, the interest rate on TLTRO III operations will be indexed to the average applicable key ECB interest rates over this period,” it said.

(PAP)