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ECB Watch: Dovish hike
The ECB decided to hike rates once further by 25bp, lifting the deposit rate to 4%. However, at the same time the central bank took a more cautious tone on future steps, suggesting that this is as high as rates will climb in this cycle. Based on its current assessment, the Governing Council considers that the key ECB interest 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. The Governing Council will continue to follow a data-dependent approach to determining the appropriate level and duration of ... (full story)