(Morning News) The European Central Bank announced on Thursday (July 21) that the three key interest rates were raised by 50 basis points.This is the first time the European Central Bank raised interest rates in 11 years, ending the era of zero interest rates in the euro zone.
Reuters reports that the euro rose about 0.7%after the European Central Bank announced key interest rates.The European Central Bank stated that it would take key measures in accordance with a firm commitment to the stable price to ensure that inflation returned to 2%of the goal.
Valle, a German bank economist, said that the European Central Bank deviated from the guidelines that had been raised by 25 basis points, which may show that officials were willing to give up the approach to the early communication plan.Valle said that "no one would criticize" they raised their interest rates 50 basis points.
He believes that in an environment where inflation is rising rapidly this year, the foresight guidance of the central bank may be outdated soon.This also proves that the European Central Bank is indeed in a more dependent data model.
Bloomberg reported that after the European Central Bank's interest rate hike exceeded expectations, traders raised bets on future policy tightening.The market price shows that the currency market traders bet on the European Central Bank's 60 basis points at the next meeting in September.The interest rate decision -making is less than 50 basis points before the announcement.
The market re -pricing shows that investors expect that the European Central Bank will have to be more radical to cope with the high inflation of record records.
