---
title: "ECB raises interest rates to record high 4pc"
publisher: "Share Talk"
author: "sharetalk"
published: "2023-09-14T14:16:26+00:00"
modified: "2023-09-14T14:18:35+00:00"
date: 2023-09-14
canonical: "https://www.share-talk.com/ecb-raises-interest-rates-to-record-high-4pc/"
category: "Blogs"
categories: ["Blogs", "Technology", "Technology, Media & Telecoms"]
tags: ["Christine Lagarde", "Deutsche Bank", "ECB", "ECB president", "EU", "European Central Bank", "EUROZONE", "Inflation", "US Federal Reserve"]
image: "https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/Stencil-Google-Chrome-2023-04-19-at-2.47.43-PM.jpeg?fit=1231%2C615&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# ECB raises interest rates to record high 4pc

**Published:** September 14, 2023
**Author:** sharetalk
**Categories:** Blogs, Technology, Technology, Media & Telecoms
**Tags:** Christine Lagarde, Deutsche Bank, ECB, ECB president, EU, European Central Bank, EUROZONE, Inflation, US Federal Reserve
**Featured image:** ![](https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/Stencil-Google-Chrome-2023-04-19-at-2.47.43-PM.jpeg?fit=1231%2C615&quality=89&ssl=1)

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The European Central Bank (ECB) has set interest rates at an all-time high in an attempt to combat ongoing inflation.

For the 10th straight meeting, the Governing Council has elevated the deposit rate from 3.75% to an unparalleled 4%, marking the most assertive series of rate hikes in the bank’s existence.

Deutsche Bank highlighted that this 15-month escalation by the ECB surpasses any seen before, even when compared to Bundesbank records dating back to 1949.

In just over a year, the ECB’s principal deposit rate has skyrocketed from minus 0.5% to its peak since the inception of the euro in 1999.

This decision follows the revision of inflation estimates for the eurozone for the current year and 2024, projected at 5.6% and 3.2% respectively.

The intent behind these heightened interest rates is to amplify credit costs, aiming to decelerate the economy and reduce the 5.3% yearly inflation across the region, which significantly exceeds the ECB’s 2% goal.

Christine Lagarde emphasized that the possibility of a future reduction in borrowing costs “was not even mentioned” after the ECB increased interest rates to 4pc.

During her ongoing press conference in Frankfurt, she stated: “Inflation has decreased, and our aim is for it to continue on that trajectory.”

When inquired if the ECB actions might exacerbate a slump in the eurozone’s economy, she replied: “Our motive is not to induce a recession but to ensure price stability.”

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