ECB holds rates as Lagarde departs
The European Central Bank kept its deposit rate at 2.5% while President Christine Lagarde announced her departure. Eurozone inflation subsequently rose to 4% in October, driven by surging energy costs.
IllustrationThe story so far
On October 29, the European Central Bank held its deposit facility rate at 2.5%, a move markets interpreted as a hawkish pause. President Christine Lagarde announced she would step down in February. The dollar gained against the euro following the decision, with money markets pricing a 67% chance of a December hike.
By November 4, flash estimates showed eurozone inflation rising to 4% in October, the highest level since September 2023. Energy prices jumped to 20.8%, driving the increase. Italy recorded the largest monthly inflation jump, reaching 5.6%. This data pushed markets to price in a higher probability of a rate hike in December.
Latest updates
2 updates · newest first- 4 NovNew development
Eurozone inflation hits 4% as energy costs surge
Eurozone inflation rose to 4% in October, its highest level since September 2023, driven by a jump in energy prices to 20.8%. The flash estimate matched economist expectations and pushed markets to price in a higher probability of a European Central Bank rate hike in December. Italy recorded the largest monthly increase, with inflation jumping to 5.6%.
CNBC ↗
Euronews ↗
- 29 OctNew development
ECB holds deposit rate at 2.5% as Lagarde announces departure
The European Central Bank kept its deposit facility rate at 2.5%, as expected, after a 25 basis point hike in September. Markets read the decision as a hawkish pause, with money markets pricing about a 67% chance of a December hike, as the bank tries to stop energy inflation from becoming entrenched. Earlier on Thursday, President Christine Lagarde announced she will step down, with CryptoTicker reporting that she leaves in February. The dollar gained against the euro after the decision.
CryptoTicker ↗