European Central Bank announced its latest monetary policy decision today at 1:15 pm BST. There was no surprise - rates were cut by 25 basis points, in-line with market expectations. Deposit facility rate was lowered from 4.00% to 3.75%. This was the first ECB rate cut since 2019. ECB was also the second G7 central bank to launch an easing cycle, after Bank of Canada decided to cut rates yesterday.
إبدأ بالإستثمار اليوم أو تدرّب على حساب تجريبي
إنشاء حساب حساب تجريبي تحميل تطبيق الجوال تحميل تطبيق الجوالHowever, EUR moved higher following the announcement. This is because ECB decided to boost inflation forecast for this year from 2.3% in March projection to 2.5% in June projections. Core inflation is seen at 2.8% in 2024. PEPP purchases will be reduced by €7.5 billion per month in the second half of 2024 and discontinue PEPP reinvestments at the end of 2024. ECB said that it is not pre-commiting to any particular rate path and that decisions will continue to by made on a meeting-by-meeting basis.
EUR moved higher in response to ECB boosting 2024 inflation forecasts. Source: xStation5
