ECB slows rate hikes with 25 basis points move

Inflation ‘too high for too long’

The European Central Bank has slowed the pace of its interest rate hikes, opting for a 25 basis points increase by comparison to its 50 basis points hike in March.

In a statement, the bank said the inflation outlook "continues to be too high for too long", and despite declining headline inflation, underlying price pressures "remain strong". The move brings the benchmark deposit rate to 3.25% and came with a warning from ECB president Christine Lagarde: "We have more ground to cover and we are not pausing, that is extremely clear." Richard Carter, head of fixed interest research at Quilter Cheviot, said the bank had "taken its foot of the pedal slightly" but "remains a little behind the curve" when compared to its US counterpart. US interest r...