As expected, the European Central Bank decided to cut the key deposit rate by 25 basis points to 3.25%. Shortly after the publication, the euro gained in value against the US dollar. Investors will now focus on the press conference scheduled for 1:45 p.m. BST with President Lagarde, who will comment on the bankers' decision and hint at further plans for ongoing monetary policy in the eurozone.
Eurozone - ECB decision.
Deposit rate: Actual: 3.25%. Expected: 3.25% Previously: 3.5%
ECB decision commentary:
- Domestic inflation remains high, as wages are still rising at an elevated pace.
- Meanwhile, financing conditions remain restrictive.
- Inflation outlook is also affected by recent downside surprises in indicators of economic activity.
- We will keep policy rates sufficiently restrictive for as long as necessary.
- The Eurosystem will no longer reinvest all of the principal payments from maturing securities purchased under PEPP, reducing PEPPa portfolio by €7.5 billion per month on average.
- The inflation outlook is also affected by recent downside surprises in indicators of economic activity.
- Traders hold ECB rate-cut bets steady, see 25 bps in December.

Euro gains against the US dollar shortly after ECB decision.
Source: xStation
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