its interest rates to their highest level in 22 years at the June 14-15 meeting and said a ninth consecutive hike was all but guaranteed in July as it predicted inflation would stay above its 2% target through the end of 2025.
The ECB's account of that meeting showed rate increases might continue at the central bank's following gathering on Sept 13-14,"It was seen as essential to communicate that monetary policy had still more ground to cover to bring inflation back to target in a timely manner," the ECB said. "The view was held that the Governing Council could consider increasing interest rates beyond July, if necessary.
It added market expectations at the time -- which priced in rate hikes in June and July and a 20% probability of an additional 25 basis-point increase afterwards followed by cuts in the first half of 2024 -- "could be judged as insufficient to bring inflation back" to 2%.
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