FRANKFURT, July 26 (Reuters) - The European Central Bank raised its deposit rate to a historic high on Thursday and kept its options open on whether more increases will be needed to bring down inflation against a worsening economic backdrop.
"The Governing Council’s future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels," the ECB said.
In its June statement, the ECB had said rates would "be brought" to sufficiently restrictive levels, implying more rises.
The ECB has now increased borrowing costs by a combined 4.25 percentage points in a year, its fastest pace on record.
Both facilities have been little used as the banking system is still awash with cash from a decade of monetary stimulus by the ECB.
Persons:
Christine Lagarde's, Francesco Canepa, Catherine Evans
Organizations:
European Central Bank, ECB, Thomson
Locations:
FRANKFURT