That's all, folks – that is the message markets have understood, overshadowing the fact that interest rates have risen once again. The European Centra
The European Central Bank has raised rates by 25 bps, yet signaled its tightening cycle has ended.Subdued growth forecasts imply rate cuts could come sooner than expected.
First, the Frankfrut-based institution balanced the hike with an announcement that no more increases are likely, with the usual caveats. Here is the quote, emphasis mine:rates have reached Secondly, the bank downgraded forecasts, focusing on what markets are already worrying about – growth. Expectations stand on a meager expansion of 0.7% in 2023 and 1% in 2024. Markets see the ECB's meager growth forecast as a graceful way to avoid admitting it fears a recession.President Christine Lagarde made an effort to remain balanced toward the press and with one eye at her peers, hawkish and dovish.
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