ECB Rate Hike Falls Flat as UK Economic Data Beats Expectations
The European Central Bank (ECB) has raised interest rates by 25 basis points to combat inflation, but the move had little impact on the Euro's value against the Pound. The EUR/GBP cross rate slipped towards 0.8580 after reaching a recent high of 0.8590.
ECB President Christine Lagarde emphasized that the central bank remains data-dependent and will decide on future moves case by case, rather than pre-committing to any specific course of action. She highlighted the risks tied to mounting price pressure amid the conflict in the Middle East.
The UK's economic data beat expectations, with strong performances in monthly Gross Domestic Product (GDP), Industrial Production, and Manufacturing Production. This has reinforced the case for the Bank of England to maintain a restrictive monetary policy to combat inflation.