The key interest rate is now 4.25 percent thanks to the ECB.

The benchmark interest rate has increased by the European Central Bank to 4.25 percent.

The European Central Bank (ECB) has so raised interest rates for the ninth consecutive time in an effort to combat the still high inflation in the euro area.

► “Inflation continues to decline, but is likely to remain too high for too long,” the bank stated following the decision on Thursday.

When the global financial crisis first began in early October 2008, the main interest rate was last this high.

German savers will now receive extra money for their bank deposits as a result. But anyone need a loan, whether to pay for a new car or a home, must pay more in interest.

The main interest rate indirectly affects supermarket prices as well. Because consumer goods’ prices rise as individuals spend less and save more, which reduces demand for them.

There is still no word on inflation.

For the foreseeable future, the ECB added, “The Governing Council’s decisions will ensure that key ECB interest rates are set at sufficiently restrictive levels for as long as necessary to achieve a timely return of inflation to the 2 percent medium-term objective.”


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