ECB Hikes Rates by 25bps to 2.50%, Market Reaction Restrained

English summary

The ECB raised its policy rate by 25 basis points to 2.50%, marking the second hike this year. The decision was widely anticipated, resulting in a minor dip for EUR/USD and negligible movement in German Bund yields. The central bank upgraded inflation forecasts and emphasized data dependence without providing clear forward guidance, shifting market focus to Lagarde's press conference.