All three rates remained unchanged for the second consecutive meeting.
The European Central Bank left interest rates unchanged, but did not offer markets a reassuring hold. The key message is that inflation risks have risen and growth risks have fallen, and that a rate increase was discussed within the Governing Council before it chose to wait for additional data and the June projections.
The April decision is not a neutral hold. The bank kept the deposit rate at 2.00%, but shifted the focus of discussion to an energy shock that raises inflation while weighing on confidence and growth. There is no pre-commitment to a specific path, but the press conference made June a pivotal meeting, as it is the first meeting at which macroeconomic projections are updated after the shock.
All three rates remained unchanged for the second consecutive meeting.
But the option of a hike was discussed in depth within the Governing Council.
Short-term yields fell after the decision despite the tone of the press conference.
First meeting with updated economic projections after the energy shock.
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This part of the paper is open to EL7 Pro members and to free members who use one of this month's free papers on it. The paper goes on to analyse the numbers, the causes and what they mean for investors, with tables, charts and sources.
This part of the paper is open to EL7 Pro members and to free members who use one of this month's free papers on it. The paper goes on to analyse the numbers, the causes and what they mean for investors, with tables, charts and sources.