ECB Hikes Rate to 2.25% in First Move Since 2023, Hawkish Tone

The European Central Bank (ECB) has increased its deposit rate to 2.25%, marking its first rate hike since 2023. The move was accompanied by a hawkish tone from the ECB President, as noted by Deutsche Bank's European economists.

Deutsche Bank highlighted that the rate hike signals a continued tightening stance, contrasting with earlier expectations of a more dovish approach. The bank's economists emphasized the hawkish messaging embedded in the ECB's statement and press conference.

No further details on the ECB's forward guidance or economic projections were provided in the original report.