ECB keeps rates unchanged as euro slips
TLT•The European Central Bank kept interest rates unchanged and warned that rising energy costs were increasing inflation risks, potentially supporting market bets on a December rate hike. The euro fell 0.3% to around $1.11, while the STOXX 600 rose 0.95%.
1. Rates unchanged
The European Central Bank left interest rates unchanged on Thursday, while warning that surging energy costs were raising inflation risks. The warning may solidify market bets for a December rate hike.
2. Markets react
The euro fell to its lowest level since last May, trading 0.3% lower at around $1.11. Two-year government bond yields fell further, while Europe's STOXX 600 was up 0.95%.
3. Lagarde departure
ECB chief Christine Lagarde resigned earlier on Thursday, ending months of speculation about her future. Analysts said her departure would start discussions about replacing her and other board members, while views differed on the prospects for further rate hikes.
