ECB Hikes by Half-Point and Signals Same Again in March
- Deposit rate raised to 2.5% from 2%, as economists expected
- Markets pare bets on the peak of the ECB’s tightening cycle
Christine Lagarde on Feb. 2.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank lifted interest rates by a half-point, with President Christine Lagarde saying another such move is almost certain next month, despite conceding that the inflation outlook is improving.
Policymakers, as expected, raised the deposit rate to 2.5%, the highest since 2008. Lagarde warned that the most aggressive bout of monetary tightening in ECB history isn’t done — even as energy prices plunge and the Federal Reserve moderates the pace of its own hikes.