ECB hikes interest rates by a quarter point amid inflation risks
The European Central Bank raised interest rates, increasing baseline borrowing costs across the bloc by a quarter point. Officials warned of “upside” inflation risks as oil prices rose above $100 a barrel.
A quarter-point increase in baseline borrowing costs across the bloc came as officials warned of “upside” inflation risks and oil prices rose above $100 a barrel. The European Central Bank raised interest rates. Fed-funds traders are pricing 64% odds that the Fed will do the same next week, though Kalshi shows slightly lower chances. Global central banks generally prefer to move rates in step to avoid distorting investment flows and currency markets.
A compromise reached in 1986 allowed Germany and Japan to cut first.