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ECB Hikes Interest Rates by an Outsized 50 BPs, EUR/USD Punches Higher


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European Central Bank expected to deliver rate hike and anti-fragmentation  tool | IG South Africa

Jul 21, 2022 | DailyFX
Nick Cawley, Strategist

ECB AND EUR/USD PRICE, CHART, AND ANALYSIS

  • ECB raises interest rates by 50bps, pushing the Euro higher.
  • Anti-fragmentation tool details announced.

*** Updates to Follow ***

The European Central Bank hiked interest rates by a larger then expected 50 basis points today, the first rate hike by the ECB for over 11 years. Going into today’s decision, the market had been looking for a 25bp hike with a possibility of 50bps mooted but not expected. The central bank said that further rate normalization would be appropriate at further meetings and that APP reinvestments (bond buying) would run for as long as needed.

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