Europe | The ECB signals the end of the hiking cycle

Summary

It is clear that after this hike the ECB is prepared for a long pause and probably the end of the hiking cycle, although further rate hikes cannot be completely ruled out as inflation could surprise to the upside and the ECB has said that it remains in a data-dependent mode.

Key points

• Key points:
• The ECB raises key interest rates by 25 bps, but not by unanimity
• Future decisions will depend on data, with an emphasis on the expectation that rates will remain high for a long period
• Growth projections have been substantially revised downwards, while inflation was revised slightly upwards

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