Euro fell after the decision of the ECB increase the rates

ECB on Thursday expectedly increased the key rate by 0.75%. The regulator increased the forecast for inflation, worsened the economy. The euro rate fell again below $ 1.00. The ECB plans to increase bets at the next meetings. Economists surveyed by Bloomberg expect an increase in the key rate to 1.5%. The European currency again sank below the level of parity with the US dollar against the background of the ECB solution to increase the base interest rate by 75 BP at once. – up to 1.25%. The deposit rate increased to 0.75%, marginal loans rate – up to 1.5%, RBC writes.

the regulator also noted that it considers a further increase in rates for the return of inflation to the target level of 2% per annum. In August, this indicator reached 9.1%. The ECB introduced an updated forecast, according to which inflation in 2022 will be 8.1%on average, in 2023 will decrease to 5.5%, in 2024 – to 2.3%. In addition, the ECB warned that at the end of this year and in the first quarter of 2023, stagnation in the economy is expected. The GDP of the Eurozone in 2022 will increase by 3.1% against previously expected 2.8%. The expectations were worsened In 2020, from 2.1% to 0.9%, to 2024 – from 2.3% to 1.9%.

economists surveyed by Bloomberg believe that the ECB will increase the rate until it reaches 1.5%. Analysts consider this level neutral when neither stimulation nor restraining economic growth occurs. The head of the ECB Lagarda at a press conference emphasized that the europion of euro also makes his contribution to the growth of inflation. EUR/USD will decline in the coming months and reach 0.93 by the end of next year, according to Danske Bank. TD Securities expect a couple of 0.96 in the last quarter of the year.