ECB raises rates by 75 basis points in ‘dovish pivot’
The European Central Bank as expected announced a 75-basis-point interest rate hike on Thursday. It is the third consecutive increase this year. The move came as no surprise to markets.
The central bank updated its wording of the forward guidance, indicating that further tightening is to be expected, but will be done on a meeting-by-meeting basis. At the press conference, following the board meeting, President Lagarde elaborated on the time lag between monetary policy decisions and the subsequent effects on economic data.