{"id":36621,"date":"2022-10-27T17:05:00","date_gmt":"2022-10-27T16:05:00","guid":{"rendered":"https:\/\/youtrading.com\/en\/?p=36621"},"modified":"2022-10-28T12:08:51","modified_gmt":"2022-10-28T11:08:51","slug":"market-wrap-ecb-hike-by-75-basis-point","status":"publish","type":"post","link":"https:\/\/youtrading.com\/en\/market-wrap-ecb-hike-by-75-basis-point\/","title":{"rendered":"Market Wrap – ECB HIKE BY 75 BASIS POINT"},"content":{"rendered":"\t\t
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The European Central Bank hiked interest rates by 75 basis points as widely expected earlier, however, downbeat comments from ECB President Christine Lagarde.<\/p>

Due to the pullback in expectations of further aggressive rate hikes from the ECB the euro<\/a> currency has fallen below parity against the US dollar and also taken a hit against the British pound<\/a>.<\/p>

In summary, the ECB increased the main refinancing rate 2.00% vs 2.00% expected, the prior 1.25%. The deposit facility rate was raised to 1.50% as expected. The Marginal lending facility was raised to 2.25%<\/p>

The ECB statement read that the ECB \u201cExpects to raise interest rates further, to ensure the timely return of 2% inflation target\u201d and \u201cInflation remains far too high and will stay above the target for an extended period\u201d.<\/p>

Additionally the TLTRO terms and conditions were recalibrated, and the ECB noted that they continue applying flexibility in reinvesting redemptions coming due in the PEPP portfolio.<\/p>

The official ECB press conference revealed that Lagarde thought that more rate hikes were necessary. President Christine Lagarde downplays the need for more rate hikes.<\/p>

She also cautiously noted during the main press conference that \u201cInflation remains far too high\u201d and Consumer and business confidence has fallen rapidly\u201d.<\/p>

The ECB Governing Council also \u201cExpect further economic weakening in remainder of this year and next year\u201d and they \u201cExpect economy to slow down substantially over remainder of the year\u201d.<\/p>

They also Cited weaker global demand and due to tighter monetary policy and that post-pandemic rebound in services demand is slowing. Risks to economic outlook noted to be \u201cclearly on the downside\u201d.<\/p>

Lagarde also said that \u201cRisks to the\u00a0outlook inflation are primarily on the outside, led by retail energy prices\u201d and \u201cBank lending to firms remains robust\u201d.<\/p>

Most telling was the comment from Lagarde that \u201cFuture decisions will continue to be data dependent and we stand ready to adjust all instruments\u201d.<\/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":"

The European Central Bank hiked interest rates by 75 basis points as widely expected earlier, however, downbeat comments from ECB President Christine Lagarde. Due to the pullback in expectations of further aggressive rate hikes from the ECB the euro currency has fallen below parity against the US dollar and also taken a hit against the […]<\/p>\n","protected":false},"author":4,"featured_media":36623,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[229,54,95,567],"yoast_head":"\nMarket Wrap - ECB HIKE BY 75 BASIS POINT - 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-ecb-hike-by-75-basis-point\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Market Wrap - ECB HIKE BY 75 BASIS POINT Market Wrap - ECB HIKE BY 75 BASIS POINT\" \/>\n<meta property=\"og:description\" content=\"The European Central Bank hiked interest rates by 75 basis points as widely expected earlier, however, downbeat comments from ECB President Christine Lagarde.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/youtrading.com\/en\/market-wrap-ecb-hike-by-75-basis-point\/\" \/>\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=\"2022-10-27T16:05:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-10-28T11:08:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/youtrading.com\/en\/wp-content\/uploads\/2022\/10\/GettyImages-1313126773.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"479\" \/>\n\t<meta property=\"og:image:height\" content=\"322\" \/>\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 - 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