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MNI ECB Review - June 2023: Ground To Cover

ECB

The June ECB policy decisions were delivered as expected: a 25bp hike to the deposit rate and confirmation that APP reinvestments will end in July.

  • The major surprise of the meeting was the upgrade to the core inflation forecasts, with the revision to the 2025 projection being particularly noteworthy.
  • These forecasts aligned with communication during the press conference in which President Lagarde stressed that there was more room to cover and that a July hike was very likely.

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