Europe | ECB ups the ante, delivers another hike and broader measures to fight inflation

The ECB has hiked by 200 bps all its three key interest rates so far in this cycle (including today’s 75bps). Today's largely anticipated rate decision was accompanied by other measures to facilitate monetary policy transmission and aid ongoing policy tightening stance

Key points

• Key points:
• The ECB raised its three key interest rates by 75 bps each. Further rate hikes expected; we expect rates to reach 2.75%
• The ECB tightened TLTRO conditions in order to provide incentives for earlier repayments and help normalize monetary policy
• Guidance of the reduction of the APP monetary portfolio will probably be unveiled in December

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