European Central Bank Raises Interest Rates to 3.75 Percent

Aiming to keep inflation under control the European Central Bank Raises Interest Rates to 3.75 Percent. European government bonds and UK gilts were lower in cautious trade ahead of today's interest rate decisions by ECB.

At today's meeting the Governing Council of the ECB took the following monetary policy decisions:

The minimum bid rate on the main refinancing operations of the Eurosystem will be increased by 25 basis points to 3.75%, starting from the operation to be settled on 14 March 2007.

The interest rate on the marginal lending facility will be increased by 25 basis points to 4.75%, with effect from 14 March 2007.

The interest rate on the deposit facility will be increased by 25 basis points to 2.75%, with effect from 14 March 2007.

The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 2.30 p.m. (CET) today.