This morning, the European Central Bank (ECB) announced a 50 basis point hike in the Deposit Facility Rate, bringing its key overnight target to 3.00%. The half-point move had been widely expected for weeks, but was suddenly in doubt yesterday amid banking system health concerns.

In somewhat of a surprise, the ECB did not provide any forward guidance of future rate hikes at the conclusion of the meeting, pledging only to be data dependent. However, ECB President Christine Lagarde made it clear in the post-meeting press conference that “inflation is projected to remain too high for too long,” and said the executive board was not waning on its commitment to fight inflation.

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