ECB raises key rates by 25 bps in May monetary policy meeting, as expected

• Prior decision
• Main refinancing rate 3.75% vs 3.75% expected
• Prior 3.50%
• Deposit facility rate 3.25% vs 3.25% expected
• Prior 3.00%
• Marginal lending facility 4.00%
• Prior 3.75%
• Headline inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term has declined over recent months, but underlying price pressures remain strong
• Past rate hikes are being transmitted forcefully to euro area financing and monetary conditions
• The lags and strength of transmission to the real economy remain uncertain
• Interest rates remains ECB's primary tool for setting monetary policy stance
• Future decisions will ensure that the policy rates will be brought to levels sufficiently restrictive
• ECB stands ready to adjust all of its instruments within its mandate to ensure that inflation returns to its 2% target over the medium term and to preserve the smooth functioning of monetary policy transmission
• Full statement

There's nothing in it that I would consider as being too much of a surprise but the addition of the phrase that a few more rate hikes will bring policy to "levels which are sufficiently restrictive" points to the fact that they are nearly done. But we all know that already.

The euro has dipped slightly on the decision, with EUR/USD dropping from 1.1075 to 1.1050 but that seems to just be some quarters disappointed that there was no 50 bps surprise. Otherwise, this is pretty much a straightforward decision and statement. Now, it's over to Lagarde.