ECB press conference

The European Central Bank (ECB) left interest rates unchanged at a meeting today, in-line with market expectations. ECB is largely seen as done hiking rates already. Statement released along with the decision showed that current level of rates is consistent with reaching the 2% inflation goal and that rates may need to be kept at elevated levels for an extended period of time.

ECB President Lagarde began a post-meeting press conference at 1:45 pm BST today. Below are key takeaways from the presser:

• The economy remains weak
• Subdued demand and tighter financing damp consumption
• The economy is likely to remain weak in the coming months
• Economy should strengthen over the coming years
• There are signs that the labour market is weakening
• Governments should roll back energy support measures
• Structural reforms can help reduce inflation pressures
• Inflation is expected to come down further in the near term
• Energy prices are less predictable due to conflicts
• Domestic price pressures remain strong
• Most measures of longer-term inflation expectations currently stand at around 2%
• Risks to growth skewed to the downside
• Credit dynamics have weakened further
• PEPP was not discussed
• We did not discuss the remuneration of reserves
• Now is not the time for forward guidance, its time for data-dependancy
• Debate on rate cuts is premature
• ECB has to be steady and has to hold
• Rise in yields is a spillover we take into account and helps bring inflation down
• More tightening is in pipeline for real economy
• Hold doesn't mean we won't ever hike again
• Growth has weakened and PMI data is not indicative of vigour
• Today's decision was unanimous
• I am not going to say we are at peak rates 

EURUSD gained at the start of Lagarde's presser but has began to swing later on. The pair is up around 0.1% over the course of the press conference. European indices are also trading slightly higher compared to pre-conference levels.

Source: xStation5