Lagarde says gas disruptions reinforce slowdown

The Governing Council today decided to raise the three key ECB interest rates by 75 basis points. This major step frontloads the transition from the prevailing highly accommodative level of policy rates towards levels that will ensure the timely return of inflation to the ECB’s 2% medium-term target. Based on its current assessment, over the next several meetings the Governing Council expects to raise interest rates further to dampen demand and guard against the risk of a persistent upward shift in inflation expectations. The Governing Council will regularly re-evaluate its policy path in light of incoming information and the evolving inflation outlook. The Governing Council’s future policy rate decisions will continue to be data-dependent and follow a meeting-by-meeting approach. tweet at 8:15am: ECB Raises Main Refinancing Rate To 1.25% From 0.50% (est 1.25%) - Raises Marginal Lending Facility Rate To 1.50% From 0.75% (est 1.50% - Raises Deposit Rate To 0.75% From 0.00% (est 0.75%) tweet at 8:15am: ECB SAYS BASED ON ITS CURRENT ASSESSMENT, OVER NEXT SEVERAL MEETINGS ECB EXPECTS TO RAISE INTEREST RATES FURTHER TO DAMPEN DEMAND AND GUARD AGAINST RISK OF A PERSISTENT UPWARD SHIFT IN INFLATION EXPECTATIONS tweet at 8:16am: ECB SAYS REDEMPTIONS COMING DUE IN PEPP PORTFOLIO ARE BEING REINVESTED FLEXIBLY, WITH A VIEW TO COUNTERING RISKS TO MONETARY POLICY TRANSMISSION MECHANISM RELATED TO PANDEMIC #News #Forex #PANDEMIC #ECBEuropean Central Bank raises rates by 75 basis points to tackle soaring inflation The European Central Bank on Thursday announced a 75 basis point interest rate rise, taking its benchmark deposit rate to 0.75%. “This major step frontloads the transition from the prevailing highly accommodative level of policy rates towards levels that will ensure the timely return of inflation to the ECB’s 2% medium-term target,” it said in a statement. It added it “expects to raise interest rates further, because inflation remains far too high and is likely to stay above target for an extended period.” Markets had largely priced in a 75 basis point hike, with the euro largely flat against the dollar and British pound.

Good afternoon, the Vice-President and I welcome you to our press conference. The Governing Council today decided to raise the three key ECB interest rates by 75 basis points. This major step frontloads the transition from the prevailing highly accommodative level of policy rates towards levels that will ensure the timely return of inflation to our two per cent medium-term target. Based on our current assessment, over the next several meetings we expect to raise interest rates further to dampen demand and guard against the risk of a persistent upward shift in inflation expectations. We will regularly re-evaluate our policy path in light of incoming information and the evolving inflation outlook. Our future policy rate decisions will continue to be data-dependent and follow a meeting-by-meeting approach. We took today’s decision, and expect tweet at 9:04am: LAGARDE SAYS DECISION UNANIMOUS LAGARDE SAYS HAD DIFFERENT VIEWS AROUND THE TABLE LAGARDE SAYS INFLATION SPREADING ACROSS WHOLE RANGE OF PRODUCTS, INCLUDING IN SERVICES *Lagarde: Inflation Is Extremely High, Spans Sectors tweet at 9:06am: ECB's Lagarde: - Next rate hike will not necessarily be 75 basis points; 75 bps is not the norm - Given how high inflation is, determined action had to be taken tweet at 9:10am: LAGARDE SAYS DOWNSIDE SCENARIO FOR GROWTH INCLUDES NEGATIVE GROWTH IN 2023 LAGARDE SAYS DOWNSIDE SCENARIO SEES GAS RATIONING LAGARDE SAYS DOWNSIDE SCENARIO REALLY DARK tweet at 9:15am: *LAGARDE: ECB CLOSELY MONITORING EURO, HAVE NOTED DEPRECIATION

tweet at 9:08am: *Fed's Powell: Pandemic Gave Rise To Much More Dire Consequences tweet at 9:09am: *POWELL: WOULDN'T HAVE SEEN SUCH HIGH INFLATION WITHOUT COVID tweet at 9:13am: Fed's Powell: - It is very much my view that we need to act strongly on inflation - We need to keep going until we get the job done tweet at 9:13am: *POWELL: PANDEMIC CONTRIBUTED TO CONSTRAINED SUPPLY - BBG *POWELL: PANDEMIC CONTRIBUTED TO REDUCTION IN LABOR-FORCE SIZE *POWELL: FED'S VIEW THAT WE NEED TO ACT FORTHRITHLY ON INFLATION *POWELL: FED NEEDS TO ACT NOW TO AVOID SOCIAL COSTS OF #INFLATION tweet at 9:14am: FED'S POWELL: HISTORY CAUTIONS AGAINST PREMATURELY LOOSENING POLICY.