The ECB raised interest rates for the ninth consecutive time on Thursday in its year-long effort to bring down inflation.
It also decided to stop remunerating banks' minimum reserves to contain the amount it pays in interest and the losses it is likely to make.
The ECB is currently remunerating lenders' mandatory reserves in the same way as their deposits, which are reserves held above the minimum.
On Thursday it increased the deposit rate to 3.75%, in a widely expected decision, while cutting to zero the rate on minimum reserves.
"Since then, the efficiency aspect has risen in relevance, in line with the higher level of the key ECB interest rates," it said.
Persons:
Arne Petimezas, Petimezas, Francesco Canepa, Balazs Koranyi, Valentina Za, Christina Fincher, Catherine Evans
Organizations:
Central Bank, Reuters, ECB, AFS Group, Thomson
Locations:
FRANKFURT, Amsterdam