ECB Hikes Rates 25 bps, Signals Hawkish Stance on Energy-Driven Inflation

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The European Central Bank raised rates by 25 bps in a widely expected move but signalled a more hawkish stance, according to UOB economist Lee Sue Ann. The ECB's hawkish rate path is seen as supportive for the Euro. Inflation risks remain elevated due to the Middle East-driven energy shock, the economist noted.

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ECB hikes rates 25 bps and signals a more hawkish path, pushing the policy rate/yield higher.