On May 4, the European Central Bank held a monetary policy meeting and announced its interest rate decision.。Under the resolution, the bank announced a 25 basis point increase in the deposit facility rate, the marginal lending rate and the main refinancing rate to 3.25%, 4.00%, 3.75%, the highest level since October 2008。

ECB: Inflation outlook will remain too high for a long time without giving any direction

In a press release, the ECB noted that for now, overall underlying price pressures in Europe remain strong and the inflation outlook will remain too high for a long time.。ECB ready to adjust existing tools to ensure 2% inflation target。The ECB said it expects to stop reinvestment under its asset purchase program in July, will regularly assess the impact of moving to long-term refinancing operations (TLTRO) on its policy stance, and will continue to be flexible in reinvesting under its emergency anti-epidemic bond purchase program (PEPP).。

However, the ECB has not offered any direction on its future initiatives。The bank said that the lag in monetary policy and the strength of transmission to the real economy is full of uncertainty, will continue to take a data-dependent approach, interest rate decisions will be based on the European inflation outlook.。The bank further noted that subsequent interest rate decisions will take full account of new economic data, potential inflation dynamics and the ability of monetary policy to transmit。

Although the European Central Bank still chose to tighten monetary policy this time, its rate hike has slowed down compared to before.。It is reported that the previous three interest rate decisions, the bank has chosen to raise interest rates by 50 basis points.。In fact, there are media reports that on the eve of the meeting, policymakers are also debating whether to raise interest rates by 25 basis points or 50 basis points, but given the economic data in recent weeks, monetary tightening could lead to downside risks to the eurozone economy, and eventually the ECB chose to raise interest rates slightly by 25 basis points。

On April 28, the initial annual rate of GDP for the first quarter of the euro area was released, which was 1.3%, lower than the predicted value of 1.4% and previous value 1.8%。

After the interest rate decision, ECB policymakers have put on an eagle Lagarde, saying that no one has proposed to stop raising interest rates.

At a press conference, European Central Bank President Christine Lagarde said it was "very clear" that the ECB would not pause its rate hikes.。She further noted that there was a general, strong consensus on the day's decision to raise interest rates。At the monetary policy meeting, no one offered to stop the practice of raising interest rates, although some officials supported a 50 basis point rate hike and others thought a 25 basis point rate hike was appropriate.。

On May 5, two other ECB policymakers also came down to support Lagarde's hawkish rhetoric。

François Villeroy de Galhau, a member of the ECB's governing council and governor of the Bank of France, said in an interview that he preferred a more limited rate hike from now on, stressing that the move would send an important signal.。He further noted that the ECB's slowdown in rate hikes was not due to a weakening determination to beat inflation, reiterating its commitment to reducing inflation to 2 per cent by 2025 or even the end of 2024.。

Another ECB member, Lithuanian Central Bank Governor Gediminas Simkus, made a similar point, arguing that current interest rates are still not high enough to urge colleagues to raise policy rates further。He said we will keep interest rates high long enough to get inflation back to 2 percent。

The euro fell short-term against the dollar after the rate decision was announced as the European Central Bank raised interest rates less than expected and the euro weakened。

As of press time, Europe and the United States have largely erased their monthly gains, trading at 1.10201, lunar line or terminated at 7 Lianyang。Some analysts say the dollar's safe-haven properties have strengthened as investors sell off due to the U.S. banking crisis, which in turn has led to the currency's strength.。In addition, last night the U.S. non-farm payrolls recorded 25 after the April quarter..30,000, sharply exceeding expectations, boosting the dollar to some extent。

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