Governing council of the European Central Bank (ECB) decided to increase the three key interest rates of the ECB by 75 basis points. As a result, the interest rates on main refinancing operations as well as marginal lending facility and deposit facility interest rates will be increased to 1.25 percent, 1.50 percent, and 0.75 percent, respectively, starting on 14th September, 2022.
Due to the fact that the deposit facility rate has been raised to a level above zero, it is no longer necessary to maintain a two-tier system for remuneration of excess reserves. It was therefore decided today by the Governing Council that the two-tier system will be suspended by setting the multiplier to zero in order to maintain stability.