Dovish ECB hikes rates for first time since eurozone debt crisis

clock • 2 min read

The European Central Bank has raised interest rates for the first time in 11 years, to 0.5%, in response to eurozone inflation soaring to 8.6% in June. Economists had been pricing in a hike of 25bps for some time, expecting the central bank to finally prioritise the rampant inflation over growth concerns. The latter was a particularly pressing issue in Europe since it had a direct, geographic exposure to the war in Ukraine, which meant it felt the impacts of the energy crisis even more intensely. Seema Shah, chief strategist at Principal Global Investors, said that the end of the ECB ...

To continue reading this article...

Join International Investment

Join International Investment today

Unlock members-only benefits:

  • Unlimited access to real-time news, industry insights, video features and market intelligence
  • Stay ahead of the curve with spotlights on international financial centres, regional trends international advice and global industry leaders
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Hear the latest cross jurisdictional developments in wealth planning, tax, regulation, investing, retirement and protection
  • Members-only access to the Editor’s weekly news roundup newsletter
  • Members-only access to analysis via our exclusive industry polls
  • Be the first to hear about our events and awards programmes

Join now

 

Already a International Investment member?

Login