• Today the ECB raised all rates by 0.25%, taking the deposit rate to an all-time high of 4.00%. • We expect today's move to be the final rate hike in this cycle. • Comments in the statement suggest the Governing Council believe rates are now sufficiently restrictive to bring inflation back to target. • As expected, they retained the option of future hikes, with a reference to data dependence at future meetings. • ECB projections of headline inflation were revised marginally higher; now projecting: 5.6% in 2023, 3.2% in 2024 & 2.1% in 2025 • Growth forecasts however were revised lower, now projecting: 0.7% in 2023, 1.0% for 2024 & 1.5% for 2025 #ebc #euro #stopy #gs
• We expect today's move to be the final rate hike in this cycle.
• Comments in the statement suggest the Governing Council believe rates are now sufficiently restrictive to bring inflation back to target.
• As expected, they retained the option of future hikes, with a reference to data dependence at future meetings.
• ECB projections of headline inflation were revised marginally higher; now projecting: 5.6% in 2023, 3.2% in 2024 & 2.1% in 2025
• Growth forecasts however were revised lower, now projecting: 0.7% in 2023, 1.0% for 2024 & 1.5% for 2025
#ebc #euro #stopy #gs