ECB hikes rates by 50-bps during its last monetary policy meeting of 2022.

The European Central Bank increased interest rates by 50-bps and increased the deposit rate to %2.00 from %1.50. The EURUSD hold above the 1.0600 and tested 1.0740 level after the central banks interest rate decisions. Due to President Lagarde speech the pair holds strengthen against dollar. Lagarde said that they can raise interest rates by 50 bps in the next meetings. Today, ECB Governing Council member Olli Rehn also said, “A 50 bps hikes are likely in February and March.” They appear will not give up on the high interest rate policy and tightening until inflation is completely brought under control.

 

The highly level annual inflation continues in Euro region. Today, Eurozone CPI data was announced above than expectation by %10.1 compared %10.0. The S&P Global Eurozone PMI Composite increased to 48.8 in December while the market expectation is 48.0 level.