Breaking: BoE hikes, ECB leaves rates unchanged.

EU and UK Flags.

- Bank of England announced its hiking of the interest rate by 25bps to o.50%. MPC voted 5-4 in favour of the hike. MPC voted 9-0 in favour of reducing QE facility of GBP 875 billion of gilt holdings with maturity of March 2022 gilt.

- ECB leaves rates flat, and maintains its guidance on interest rates and the QE.

  • Rate unchanged at -o.5%

  • Reaffirms PEPP ending in March

  • Q2 will bring lifting of APP to EUR40B montly, then reduced to EUR20 by Q4

  • PEPP reinvestments to continue by the end of 2024

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