In conclusion, the ECB was balanced enough to please the markets
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We're after the ECB interest rate decision, which turned out to be a 50bp rate hike. Let's hear from Nour Hammoury, Chief Market Analyst at SquaredFinancial, who comments on the ECB move.
Nour Hammoury (SquaredFinancial): Despite Credit Suisse's situation and the banking incidents in the US, the ECB had no other options but to stick to its policy and hike by 50bps as inflation is still at a record high. However, it was a dovish hike as the bank did not mention anything regarding the next meeting. In the previous decision, the bank mentioned that in the next two meetings, large rate hikes could be appropriate, but after what happened over the past few days, the ECB will be more careful going forward. Moreover, the decision was not unanimous as there were 3 to 4 members who voted against the decision.
after what happened over the past few days, the ECB will be more careful going forward.
Read next: USA: PPI data is another confirmation that inflation remains on the right track| FXMAG.COM
Nour Hammoury (SquaredFinancial): In conclusion, the ECB was balanced enough to please the markets. The question now is if this is the end of the banking issues, or if we will hear about more banks in the coming days.
