Home Business ECB likely to stick to big rate hike despite banking turmoil – Reuters News Agency

ECB likely to stick to big rate hike despite banking turmoil – Reuters News Agency

0
ECB likely to stick to big rate hike despite banking turmoil – Reuters News Agency

Business & Finance

In the wake of an exclusive Reuters report, financial markets adjusted expectations around future euro rate rises. Reuters reported that the European Central Bank was still leaning towards a 50-basis point hike, despite volatility after the Silicon Valley Bank collapse. The Reuters report, which prompted German bond futures to fall, revealed that policymakers were confident that turmoil around SBV was dissipating, and that the regional economy was strong enough to withstand further policy tightening aimed at tackling inflation. Investors had started to doubt that commitment as the SVB drama unfolded. Data released hours after the report underlined that analysis, showing a stronger than expected rise in industrial production while Germany, the bloc’s largest economy, was also seen picking up. In the ECB’s Thursday meeting it was confirmed that they, indeed, hiked by 50 basis points.

Market Impact

The ECB activated a 50-basis point hike. German bond futures fell after the report was released and revealed the regional economy was strong enough to withstand further policy tightening aimed at tackling inflation. Data revealed a stronger than expected rise in industrial production while Germany was also seen picking up.

Article Tags

Topics of Interest: Business & Finance

Type: Reuters Best

Sectors: Business & Finance

Regions: EuropeGlobal

Countries: Germany

Win Types: Exclusivity

Story Types: Exclusive / Scoop

Media Types: Text

Customer Impact: Important Regional StorySignificant National Story

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here