ECB Leaves Key Interest Rates Unchanged, Short of Markets Hawkish Expectations

ECB kept key rates unchanged in its January monetary policy decision at 4.50%, multi-year highs for the third consecutive meeting, with the closely watched deposit facility rate 4.00%, in line with markets thoughts. The ECB broke their record streak of rate hikes with the pause and markets are also convinced that they aren’t going to add any more considering the state of the economy at the moment. The ECB’s Lagarde did not push back, failing to make use of Middle … Continue reading “ECB Leaves Key Interest Rates Unchanged, Short of Markets Hawkish Expectations”

ECB Leaves Key Interest Rates Unchanged, Announce Early End to PEPP

ECB kept key rates unchanged in its December monetary policy decision at 4.50% at multi-year highs for the second consecutive meeting, with the closely watched deposit facility rate to 4.00%, in line with markets thoughts. The ECB broke their record streak of rate hikes the prior month and markets are also convinced that they aren’t going to add any more considering the state of the economy at the moment. The ECB signaled an early conclusion to its last remaining bond … Continue reading “ECB Leaves Key Interest Rates Unchanged, Announce Early End to PEPP”

ECB Breaks Hiking Cycle, Leaves Key Interest Rates Unchanged at 4.50% at October Meeting

ECB kept key rates unchanged in its October monetary policy decision at 4.50%, with the closely watched deposit facility rate to 4.00%, in line with markets thoughts. The Euro was largely unchanged with hardly anything new to take away from the statement here. The ECB broke their record streak of rate hikes and markets are also convinced that they aren’t going to add any more considering the state of the economy at the moment. The focus the statement and Lagarde … Continue reading “ECB Breaks Hiking Cycle, Leaves Key Interest Rates Unchanged at 4.50% at October Meeting”

ECB Raises Rates Another 25bps, Seen as a Dovish Final Hike

ECB raised key rates by 25 bps in its September monetary policy decision to 4.50%, taking the closely watched deposit facility rate to 4.00%, in line with markets thoughts. The Euro broadly weakened and European yields generally fell. The bank’s staff new inflation projections incorporate the recent run-up in energy prices supported the hawks’ view that more tightening was needed, countering the doves who likely pointed to downward revisions to GDP growth and core inflation forecasts as a reason to … Continue reading “ECB Raises Rates Another 25bps, Seen as a Dovish Final Hike”

ECB Raises Rates Another 25bps, Hints May be End of Rate Hikes

ECB raised key rates by 25 bps in its July monetary policy decision to 4.25% as expected, the highest level, and the rate on the deposit facility to a 22-year high of 3.5%. The move follows a 25-bps rate hike last meeting in the ninth consecutive rate hike. This despite the Eurozone entered a recession at the beginning of 2023. The bank said inflation continues to decline but is still expected to remain too high for too long. Expectation is … Continue reading “ECB Raises Rates Another 25bps, Hints May be End of Rate Hikes”

ECB Tightens Screws, Raises Rates Another 25bps Despite Europe Being in a Recession

ECB raised key rates by 25 bps in its June monetary policy decision to 4% as expected, the highest level, and the rate on the deposit facility to a 22-year high of 3.5%. The move follows a 25-bps rate hike last meeting in the eighth consecutive rate hike. This despite the Eurozone entered a recession at the beginning of 2023. The bank cites headline and core inflation rates remain significantly above the ECB’s target of 2% as the reasoning. EU borrowing … Continue reading “ECB Tightens Screws, Raises Rates Another 25bps Despite Europe Being in a Recession”

ECB Raises Rates Another 25bps, Highest Level Since July 2008

ECB raised key rates by 25 bps in its May monetary policy decision following a 50-bps rate hike last meeting, and matching expectations from most analysts.  EU borrowing costs are at the highest level since July 2008 and ECB President pledged interest rates remains ECB’s primary tool for setting monetary policy stance. Future decisions will ensure that the policy rates will be brought to levels sufficiently restrictive the statement said. The deposit facility rate is now 3.25%, the refinancing rate 3.75% … Continue reading “ECB Raises Rates Another 25bps, Highest Level Since July 2008”