29 October ECB Rate Decision
- Intrest Rate: 2,65 (Expected: 2,65; Previously: 2,65%)
- Despoit Rate: 2,5 (Expected: 2,5; Previously: 2,5%)
- Marginal Rate: 2,9 (Previously: 2,9)
The European Central Bank left interest rates unchanged, keeping the deposit rate at 2.5%, in line with economists’ expectations. The decision was made amid rising uncertainty linked to high energy prices, fiscal and political tensions in France, and the announcement that Christine Lagarde will step down early as ECB President in February 2027.
Despite two earlier rate hikes, euro area inflation accelerated in September to 3.8%, and rising oil and gas prices increase the risk of further inflationary pressure. At the same time, the European economy is showing signs of slowing, and GDP growth in the third quarter may have eased to 0.2%, alongside weakening demand for credit and tighter financing conditions.
Economists expect another rate hike in December, which would likely conclude the current monetary tightening cycle, while market pricing points to the possibility of two additional hikes in 2027. The ECB therefore faces a growing risk of stagflation, where the need to curb inflation clashes with deteriorating growth prospects.
EURUSD [M1]
Source: xStation5
BREAKING: U.S. Economy Surges as Inflation Cools
There is no good scenario for the euro today
Economic Calendar: ECB Decision, PCE Inflation, and Amazon Earnings in the Spotlight 🚨
Morning Wrap - Key Information to Start Your Day 💡
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.