{"id":32274,"date":"2022-07-21T20:08:00","date_gmt":"2022-07-21T19:08:00","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=32274"},"modified":"2022-07-21T23:02:04","modified_gmt":"2022-07-21T22:02:04","slug":"market-wrap-historic-ecb-rate-hike","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/market-wrap-historic-ecb-rate-hike\/","title":{"rendered":"Market Wrap &#8211; Historic ECB Rate Hike"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"32274\" class=\"elementor elementor-32274\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<div class=\"elementor-inner\">\n\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a07cb59 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a07cb59\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t\t<div class=\"elementor-row\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a5de9f2\" data-id=\"a5de9f2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-column-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-95f0fb2 elementor-widget elementor-widget-text-editor\" data-id=\"95f0fb2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-text-editor elementor-clearfix\">\n\t\t\t\t<p>The ECB increased interest rates for the first time in 11 years as expected as the Governing council made its biggest effort yet to fight rampant inflation across the euro zone.<\/p><p>The central bank had previously signalled it would be increasing rates in July and September as consumer prices keep surging. The Frankfurt, Germany, institution had kept rates at in negative territory since 2014, as it dealt with the region\u2019s sovereign debt crisis and the coronavirus pandemic.<\/p><p>Some surprise was seen by market participant by pushing after the central bank increased benchmark rate up by 50 basis points, bringing its deposit rate to zero. Traders had largely expected a smaller hike of 25 basis points.<\/p><p>The ECB policy statement read \u201cThe Governing Council judged that it is appropriate to take a larger first step on its policy rate normalisation path than signalled at its previous meeting.\u201d.<\/p><p>The <a href=\"http:\/\/bit.ly\/2YAQOVh\" target=\"_blank\" rel=\"noopener\">EURUSD<\/a> pair\u00a0rose to a session high on news of the more aggressive rate hike, to trade at $1.0257. The yield on the 10-year Italian bond also jumped on the news, which was not surprising.<\/p><p>Investors also kept a keen eye on details regarding the ECB\u2019s new anti-fragmentation tool, which is aimed at supporting those nations with big debt piles starting to build up, such as Italy.<\/p><p>Strangely, earlier today we saw the resignation of Prime Minister\u00a0Mario Draghi. This was seen as an act of definance against the current inflationary backdrop. Draghi used to President of the ECB.<\/p><p>In terms of what to expect next we probably need to look into the ECB policy statement. The ECB also said that this moves in interest rates \u201cwill support the return of inflation to the Governing Council\u2019s medium-term target by strengthening the anchoring of inflation expectations and by ensuring that demand conditions adjust to deliver its inflation target in the medium term.\u201d<\/p><p>It should be noted that the central bank\u2019s inflation target is 2%. Inflation has gone wildly behind this in recent months. The ECB may it cleat it would be increasing rates in September as consumer prices surge.<\/p><p>The bank\u2019s deposit rate is now 0%, the main refinancing operations rate is 0.5% and the marginal lending facility is at 0.75%. This certainly leaves further scope for rate hikes, however, the eurozone banking system is complex.<\/p><p>Most of the gains in the EURUSD pair have been kept, as bulls press against the 1.0200 handle. The <a href=\"http:\/\/bit.ly\/2Lg9zs6\" target=\"_blank\" rel=\"noopener\">EURGBP<\/a> pair also had a good day on the foreign exchange market as the pound remained pressured.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The ECB increased interest rates for the first time in 11 years as expected as the Governing council made its biggest effort yet to fight rampant inflation across the euro zone. The central bank had previously signalled it would be increasing rates in July and September as consumer prices keep surging. The Frankfurt, Germany, institution [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":32341,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[54,95],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.6 (Yoast SEO v20.11) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Market Wrap - Historic ECB Rate Hike - Youtrading UK<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/youtrading.com\/en\/market-wrap-historic-ecb-rate-hike\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Market Wrap - Historic ECB Rate Hike Market Wrap - Historic ECB Rate Hike\" \/>\n<meta property=\"og:description\" content=\"The ECB increased interest rates for the first time in 11 years as expected as the Governing council made its biggest effort yet to fight rampant inflation across the euro zone.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/youtrading.com\/en\/market-wrap-historic-ecb-rate-hike\/\" \/>\n<meta property=\"og:site_name\" content=\"Youtrading UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/YouTradingEnglish\/\" \/>\n<meta property=\"article:published_time\" content=\"2022-07-21T19:08:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-21T22:02:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2022\/07\/GettyImages-1344805543.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"698\" \/>\n\t<meta property=\"og:image:height\" content=\"419\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nathan Batchelor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Market Wrap - Historic ECB Rate Hike Market Wrap - Historic ECB Rate Hike\" \/>\n<meta name=\"twitter:description\" content=\"The ECB increased interest rates for the first time in 11 years as expected as the Governing council made its biggest effort yet to fight rampant inflation across the euro zone.\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nathan Batchelor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/youtrading.com\/en\/market-wrap-historic-ecb-rate-hike\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/youtrading.com\/en\/market-wrap-historic-ecb-rate-hike\/\"},\"author\":{\"name\":\"Nathan Batchelor\",\"@id\":\"https:\/\/youtrading.com\/en\/#\/schema\/person\/88ce8e6688d6c690a83e6cbeee2eccab\"},\"headline\":\"Market Wrap &#8211; 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