BREAKING: ECB keeps rates unchanged 📌

The European Central Bank has decided to maintain interest rates at 4.5%, in line with analysts' expectations.

• Current: 4.5%; forecast: 4.50%; previously: 4.50%;
• The current level of interest rates will significantly contribute to achieving the inflation target of 2%
• The ECB intends to discontinue reinvestments under PEPP at end of 2024
• Based on our current assessment, ECB considers that interest rates are at levels that, maintained for a sufficiently long duration, will make a substantial contribution to this goal.

The European Central Bank's (ECB) recent statement, as anticipated, indicated a continuation in the disinflation process, suggesting that their inflation-targeting efforts are not yet complete. This announcement did not significantly impact the euro, as the market's expectations were aligned with the ECB's statement. Attention is now turning to ECB President Christine Lagarde's upcoming press conference for further insights and developments.

EURUSD remains muted after the decision, and initial gains were immediately erased.

Source: xStation 5