ECB Holds Rates

London: 14 December 2023 (TraderMade): The European Central Bank kept its hawkish talons firmly on interest rates, holding them at multi-year highs despite whispers of a slowing economy. The significant refinancing rate remained at a 22-year peak of 4.5%, and the deposit facility rate stayed at its record 4%.

All eyes now turn to President Lagarde's remarks, particularly her stance on the inflation front. Has the unexpectedly rapid decline in inflationary fires softened the ECB's hawkish grip? Will she hint at a potential shift towards dovish winds as market speculation swirls about future interest-rate cuts?

The economic dance floor awaits Lagarde's next move. Will she keep the hawkish tango going? Or acknowledge the changing rhythm and usher in a dovish waltz? Her words could be crucial to unlocking the next chapter of the Eurozone's economic story.