The European Central Bank announced its latest monetary policy decision at 1:15 pm GMT today. Bank decided to deliver a 50 basis point rate hike in the first policy decision of 2022. Such an outcome was expected by the markets. The Bank repeated in a statement that it will take meeting-y-meeting approach to setting interest rates. ECB expects rates will rise further significantly but at a steady pace. Most importantly, ECB stressed that it intends to hike by another 50 basis point at March meeting. Pace of reduction in APP bond portfoilio was confirmed at €15 billion per month, starting from March.
EUR and DE30 gained following the decision. Nevertheless, scale of moves was quite small as ECB decision turned out to be in-line with expectations. EURUSD was quick to erase those gains and now trade below pre-announcement levels. Attention now turns to the press conference of ECB President Christine Lagarde, which is set to begin at 1:45 pm GMT.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile app
EURUSD deepens today's slide after ECB decision. The pair jumped above 1.10 mark after FOMC decision yesterday but struggles to maintain momentum. Source: xStation5
