European Central Bank , Raises Interest Rates Again.<br />Reuters reports that interest rates were raised for the third consecutive time on Oct. 27.<br />The interest rate that the European Central Bank (ECB) pays on bank deposits has been increased by 75 basis points.<br />Now sitting at 1.5%, that's the <br />highest it's been since 2009.<br />The Governing Council took today’s decision, and expects to raise interest rates further, to ensure the timely return of inflation to...2%, European Central Bank, via statement.<br />Reuters reports that over the last eight years, .<br />the ECB bought 3.3 billion euros worth of bonds <br />under the Asset Purchase Program because the <br />central bank thought inflation was going to stay down.<br />On Oct. 27, the central back reiterated its plans to continue reinvesting proceeds from that purchase.<br />The Governing Council intends to continue reinvesting, in full, the principal payments from maturing securities purchased under the APP for an extended period of time, European Central Bank, via statement.<br />Additionally, the ECB hopes that by changing the Longer-Term Refinancing Operations terms, banks will be encouraged to pay back loans early. .<br />The ECB also increased the rates on its Main Refinancing Operation and Marginal Lending Facility to 2.0% and 2.25%, respectively
