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ECB Stops Short of Signaling Future Rate Rises

ECB

ECB raises the benchmark policy rates by 50bps, as flagged in the MNI Preview.

The bank's statement is found here. Notably, the bank stops short of formally signalling the magnitude of future rate rises. Other highlights include:

  • Inflation is projected to remain too high for too long.
  • The Governing Council is monitoring current market tensions closely and stands ready to respond as necessary
  • The Governing Council stands ready to adjust all of its instruments within its mandate
  • Subsequent APP pace will be determined over time.
  • Transmission Protection Instrument is available to counter unwarranted, disorderly market dynamics that pose a serious threat to the transmission of monetary policy

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