UK and Global Interest Rate Debate Dominates the Pound, Risk Rebound Rescues GBP/USD Exchange Rate from 3-Month Lows The ECB increased interest rates by 25 basis points at the latest policy meeting with the deposit rate at 4.00% and the refi rate at 4.50%. The bank also signalled that interest rates are high enough to bring inflation under control which suggested strongly that rates have peaked. The Euro briefly spiked higher after the rate hike, but the market quickly reversed course and the single currency posted significant losses. The Euro to Dollar (EUR/USD) exchange rate dipped to 6-month lows close to 1.0630 ... (full story)