Forex
ECB Hikes Rate to 2.65%, Euro Makes Modest Gains Amid Inflation Concerns
The European Central Bank (ECB) raised its main refinancing rate to 2.65% on September 10, as widely expected, citing inflation above target.
The euro made modest gains against most other major currencies, except for a loss in the euro-dollar pair.
The ECB's forecast for inflation in 2026 remains at 3%, but projections for next year were slightly raised. Growth expectations for 2026 and 2027 were also revised upward.
Recent GDP data from the eurozone showed a 0.6% growth in the second quarter, the best quarterly expansion in about four years.