empty
10.05.2023 12:39 PM
ECB is at the final stage of rate hike cycle

This image is no longer relevant

ECB Governing Council member Joachim Nagel said the central bank may be approaching the final stage of its historical cycle of interest rate hikes.

The head of the Bundesbank stated on Wednesday that even though the cost of borrowing has not yet finished rising, and core inflation still needs to be reined in, the results of the ECB's tight monetary policy are already satisfying.

This image is no longer relevant

"I am confident that monetary policy is showing its effect," Nagel commented.

EUR/USD also gained over 15,000 pips since the end of last year, and signs of a slowdown are emerging.

This image is no longer relevant

Nagel's remarks also align with the majority of economists who believe that the ECB will raise the deposit rate twice more, in June and July, leaving it at a peak of 3.75%. Meanwhile, the Governor of the Bank of Greece, Yannis Stournaras, stated that the ECB's rate hikes would stop in 2023. Martins Kazaks from Latvia said that rate hikes could continue even after July.

Nagel characterized last week's decision to slow the pace of tightening while announcing an end to reinvestments under the Asset Purchase Program as the right step, although he emphasized that the job is not yet done.

Andrey Shevchenko,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

The Uncertainty Factor Will Pressure the Dollar and Support Demand for Safe-Haven Assets (There is a likelihood of further decline in USD/JPY and rising gold prices)

Global markets remain heavily influenced by Donald Trump's erratic behavior. In his attempt to pull the U.S. out of severe economic dependence on imports, Trump continues to juggle the topic

Pati Gani 09:45 2025-04-14 UTC+2

The Market Wants to, But Hesitates

Do you have a plan, Mr. Donald Trump? Some believe what's happening is masterful diplomacy — they hope that once serious proposals from other countries reach the White House, tariffs

Marek Petkovich 09:45 2025-04-14 UTC+2

What to Pay Attention to on April 14? A Breakdown of Fundamental Events for Beginners

No macroeconomic events are scheduled for Monday. However, the macroeconomic background is not of much interest to traders at the moment. At the very least, it does not drive

Paolo Greco 06:08 2025-04-14 UTC+2

EUR/USD Weekly Preview: The Show Must Go On

Last week, EUR/USD posted its strongest rally of the year, climbing from 1.0882 to a weekly high of 1.1474. A corrective pullback or consolidation phase typically follows such an impulsive

Irina Manzenko 05:37 2025-04-14 UTC+2

GBP/USD Overview. April 14: The British Pound Remains a Hostage of the Dollar

The GBP/USD currency pair also traded higher on Friday. However, it's worth noting that the British currency—once praised for its remarkable resilience against the dollar in recent years—is now rising

Paolo Greco 03:37 2025-04-14 UTC+2

EUR/USD Overview. April 14: The Dollar—From Leader to Laggard

The EUR/USD currency pair continued its steady rally on Friday. At this point, there are no more questions about what is happening in the currency market—it's as simple

Paolo Greco 03:37 2025-04-14 UTC+2

The US Dollar: Weekly Preview

There will be a few significant events in the upcoming week. Of course, reports such as industrial production, retail sales, and new home sales should be noted. At first glance

Chin Zhao 00:59 2025-04-14 UTC+2

The ECB May Cut Interest Rates Twice

The euro is showing a sharp rally against the U.S. dollar. The EUR/USD pair has already reached a three-year high and shows no signs of slowing down. Meanwhile, according

Jakub Novak 12:42 2025-04-11 UTC+2

AUD/USD. Analysis and Forecast

The AUD/USD pair is attempting to attract buyers in its rebound from the psychological level of 0.5900, marking its lowest point since March 2020. The upward momentum has managed

Irina Yanina 12:39 2025-04-11 UTC+2

Markets Face a Prolonged Period of Instability (USD/JPY and USD/CHF Likely to Continue Falling)

On Thursday, investors realized there is currently no such thing as stability. High market volatility remains and will continue to dominate for some time. The ongoing cause of this remains

Pati Gani 09:11 2025-04-11 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.