Summary of ECB Rate Hike and Talks

The European Central Bank (ECB) raised its key interest rates by 25 basis points on Thursday, in its tenth consecutive rate hike. The decision came as the ECB battles soaring but calming inflation.

In a statement, the ECB said that the rate hike was "necessary to ensure that inflation returns to its 2% medium-term target in a timely manner." The ECB also lowered its economic growth projections for the euro area, citing the ongoing war in Ukraine and rising energy prices as Oil prices managed to recently hit a new 10-month high.

Moreover, she also acknowledged that the war in Ukraine was creating "a great deal of uncertainty" for the eurozone economy.

Other ECB officials also weighed in on the rate hike and the economic outlook. For example, ECB Vice President Luis de Guindos said that the central bank was "prepared to take further steps" to bring inflation down. Meanwhile, ECB Governing Council member Olli Rehn said that the ECB was "not indifferent to the impact of monetary policy on growth."

Expectations for the Fed's FOMC rate decision

Investors currently will be waiting for the Fed FOMC rate decision, with most market participants expecting a pause from Powell. To closely monitor the difference in tone done while stating the comments between both central bank officials, as the most hawkish one will fuel additional strength to its own currency.

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