European Central Bank

Like the Fed’s Move, ECB’s 25-Basis Point Refinancing Rate Hike Matched Market Expectations

July 27, 2023

The deposit, refinancing and marginal lending facility rates of the European Central Bank were each lifted by 25 basis points to 3.75%, 4.25% and 4.50%, respectively, after today’s scheduled monetary policy review. There have been no pauses as yet since the tightening cycle began in July 2022, but the cumulative 425 basis point rise in […] More

An Active Session from a Data Release, Central Bank Watching and Market Volatility Standpoint

June 15, 2023

The dollar touched an 8-month high against the yen overnight of 141.5 and currently shows a net 0.9% advance from Wednesday’s close. The dollar edged only 0.1% higher against sterling, the euro and Swiss franc, however. The price of Bitcoin tokens dived over $1000 (or 3.9%) so far today. Prices have diverged for West Texas […] More

ECB Interest Rate Increased by 25 Basis Points

May 4, 2023

The Governing Council of the European Central Bank has hiked its repo, deposit, and marginal lending facility rates by 25 basis points each to 3.75%, 3.25%, and 4.0%. Today’s action represents a further reduction of incremental tightening after a trio of 50-bp hikes in December, February and March and before that hikes of 50 bps […] More

50-Basis Point ECB Interest Rate Hike Matches Signaled Size Prior to Credit Suisse’s Liquidity Crunch

March 16, 2023

The European Central Bank Governing Council announced a 50-basis point hike of its deposit, refinancing and marginal lending facility rates to 3.0%, 3.50% and 3.75%. This matches the likely increment indicated in official comments since the last policy review despite the very recent financial market strains in the U.S. and Europe. Only a few council […] More

European Central Bank

February 2, 2023

The European Central Bank was late to join the rate hiking party. The refinancing rate rate was at zero percent as recently as mid-2022, but officials made up for lost time in the second half of the year, enacting 250 basis points of increase in four incremental moves. Today’s 50-basis point hike to 3.0% matched […] More

More Central Bank Policy Rates Get Raised 10-Year Sovereign Debt Yields Drop

February 2, 2023

Officials at the European Central Bank and Bank of England raised their policy interest rate by 50 basis points to their highest levels since 2008. The size of those increases matched expectations. The policy rates of the Hong Kong and Macao Monetary Authorities matched the Fed’s 25-basis point increase. Brazil’s Selic interest rate was kept […] More

Central Bank Interest Rate Hikes and U.S. Data Clobber Share and Bond Prices, But Dollar Soars

December 15, 2022

No fewer than eight central banks have hiked interest rates today: the European Central Bank, Bank of England, Swiss National Bank, Bangko Sentral ng Pilipinas, and Hong Kong and  Macau Monetary Authorities all by 50 basis points and matching the Fed’s action yesterday; the Bank of Norway by 25 basis points; and the Central Bank […] More

ECB Raises Interest Rate and Changes Terms of Pandemic Relief to Banks

October 27, 2022

The European Central Bank engineered its third interest rate hike since midyear, a hike of 75 basis points that matches its previous action. The first hike in July amounted to 50 basis points. The new rate structure is a 2.0% refinancing rate flanked by a 1.50% deposit rate and a 2.25% on the marginal lending […] More

ECB Minutes: Latest Rate Increase Leaves Level Still Highly Accommodative

October 6, 2022

Hawkish minutes published today by the European Central Bank’s Governing Council meeting of September 7-8 shed useful information behind the record 75-basis point interest rate hike decided then. Officials recognize the onset of recessionary conditions yet are adamant that such mustn’t prevent needed forceful interest rate increases. Inflation risks are deemed skewed to the upside […] More

75-Basis Point ECB Rate Hike

September 8, 2022

An initial 50-basis point interest rate hike at the European Central Bank in July has been followed by a 75-bp  hike at this month’s scheduled meeting. The three interest rates now included a 1.25% refinancing rate flanked by a 0.75% deposit rate and a 1.50% marginal lending facility rate. Prior to July, there had not […] More