As expected by the market, the ECB decided to keep all 3 key interest rates unchanged. In the first seconds after the publication, the euro drops against the US dollar. Here are the most important comments included in the report after the decision:
- Current rate levels making substantial contribution to reaching 2%
- Wage growth is gradually moderating
- Measures of underlying inflation have eased
- Domestic price pressures are strong and are keeping services price inflation high
- Appropriate to lower rates if greater confidence inflation will meet target
- Traders price 19 bps of cuts by June
EURUSD falls below the local lows of early April, in the face of a slightly dovish announcement in which the ECB indicates that it is satisfied with inflation trends.
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