Economy
December 14, 2022, 17:06 1 minute
| Capping off a year of agenda-setting exclusives, Reuters exclusively revealed yesterday that the European Central Bank (ECB) would use its last rate-setting meeting of 2022 to improve its inflation forecasts for the euro area and acknowledge that inflation would be well above its 2% target in 2025.
Such changes in inflation forecasts have a direct relationship to future monetary policy, as became fully apparent when the ECB officially confirmed the move today. Citing the inflation outlook and the need to “stay the course” in the fight against it, ECB President Christine Lagarde made it clear that more significant rate hikes of 50 basis points will be needed for some time. These comments boosted the euro against the dollar and restored the market consensus on the future direction of rates. |
Market impact
These comments boosted the euro against the dollar and restored the market consensus on the future direction of rates.
item tags
Themes of interest: Economy
Guy: Best of Reuters
Sectors: Economy and politicsCurrencies and Fixed Income
Regions: Europe
Types of wins: Exclusiveness
Types of stories: Exclusive / Scoop
Media Types: Text
Impact on the client: important world history
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