The ECB raised its benchmark interest rate by 75 bps to 1.25 %, highest level since November 2011 as widely expected.
- ECB significantly revised inflation projections and inflation is now expected to average 8.1% in 2022, 5.5% in 2023 and 2.3% in 2024.
- Central bank will re-evaluate its policy path on a regular basis in light of new information and changing inflation expectations.
- Over next several meetings the ECB expects to raise interest rates further to dampen demand and guard against risk of a persistent upward shift in inflation expectations.
- Policymakers notice that very high energy prices are reducing purchasing power of people’s incomes and, although supply bottlenecks are easing, they are still constraining economic activity. Price pressures continue to strengthen and broaden across the economy, and inflation may climb further in the near term.
- ECB now expect economy to grow by 3.1% in 2022, 0.9% in 2023 and 1.9% in 2024
Investors will focus now on ECB President Lagarde comments at the press conference regarding the economic outlook, energy crisis, and inflation.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
EURUSD again fell below the parity level. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
