ECB raises key rates by 25 bps in September monetary policy meeting

<ul><li><a href="https://www.forexlive.com/centralbank/ecb-raises-key-rates-by-25-bps-in-july-monetary-policy-meeting-as-expected-20230727/" target="_blank" rel="follow">Prior decision</a></li><li>Main refinancing rate 4.50% vs 4.25% expected</li><li>Prior 4.25%</li><li>Deposit facility rate 4.00% vs 3.75% expected</li><li>Prior 3.75%</li><li>Marginal lending facility 4.75%</li><li>Prior 4.50%</li><li>Inflation continues to decline but is still expected to remain too high for too long</li><li>Past rate hikes continue to be transmitted forcefully</li><li>Financing conditions have tightened further and are increasingly dampening demand</li><li>ECB considers that key rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target</li><li>Future decisions will ensure that the key rates will be set at sufficiently restrictive levels for as long as necessary</li><li>ECB will continue to follow a data-dependent approach to determining the appropriate level and duration of restriction</li><li><a href="https://www.ecb.europa.eu/press/pr/date/2023/html/ecb.mp230914~aab39f8c21.en.html" target="_blank" rel="nofollow">Full statement</a></li></ul><p>The gist of it is that the ECB has indicated that interest rates have peaked i.e. we are at a terminal rate already. The euro has fallen on the headlines as the ECB also lowers its economic projections significantly. Here's the details:</p>

This article was written by Justin Low at www.forexlive.com.