ECB's Lagarde Says 'Inflation Remains Far Too High'

The ECB has increased interest rates by 75 basis points, marking the third consecutive major rate hike. This decision aims to combat high inflation, which reached 9.9% in the Euro area in September. Factors such as rising energy and food prices, supply bottlenecks, and post-pandemic demand recovery have contributed to inflation. The ECB is adjusting its monetary policy, including changes to the TLTRO 3 terms, to align with market conditions and ensure effective transmission of policy rate increases. Additionally, the remuneration of minimum reserves held by credit institutions will be set at the ECB deposit facility rate. Detailed press releases on these decisions are available on the ECB website.

What changes were made to the TLTRO 3 terms and conditions?

How does the ECB plan to align the remuneration of minimum reserves with market conditions?