The ECB is expected to raise interest rates by 25 basis points – Trading Economics
It is noted that this will lead to an increase in borrowing costs to the highest level since the financial crisis of 2008, and also confirm the acceleration of quantitative tightening of monetary policy
According to analysts, investors will closely watch for guidance from officials regarding future interest rate hikes, particularly considering the current inflation rate of 6.1% and a base rate of 5.3%, significantly exceeding the ECB's target of 2%.
This is reported by Trading Economics.
Furthermore, a press conference by President Christine Lagarde will be carefully analysed for any hints of a potential peak in interest rates, as markets expect another quarter-point hike in July.
Over the past year, the ECB has already raised rates by an unprecedented 375 basis points, which is the fastest pace of monetary policy tightening in the bank's history, say analysts.
Background. Earlier, Mind reported that the US Federal Reserve maintained the base rate in the target range of 5–5.25%.