ECB raises key rates by 75 bps in October monetary policy decision, as expected

• Prior decision
• Main refinancing rate 2.00% vs 2.00% expected
• Prior 1.25%
• Deposit facility rate 1.50% vs 1.50% expected
• Prior 0.75%
• Marginal lending facility 2.25%
• Prior 1.50%

• Expects to raise interest rates further, to ensure the timely return of 2% inflation target
• Inflation remains far too high and will stay above the target for an extended period
• TLTRO terms and conditions have been recalibrated (changes to be announced at 1345 GMT)
• Will continue applying flexibility in reinvesting redemptions coming due in the PEPP portfolio
• Full statement

Well, they pretty much delivered on expectations and at first glance, there isn't anything in the statement that really stands out. The key passage in the forward guidance is that they expect to raise rates further as 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 is "far too high" and will stay elevated for a prolonged period of time. It's now over to Lagarde to deal with the semantics of the decision today and what to expect in December.

EUR/USD is a touch lower on the decision, down from around 1.0035 to 1.0010-20 levels at the moment - nothing too outstanding.