The European Central Financial institution on Thursday confirmed expectations of a 50 foundation level rate of interest improve, taking its key fee to 2.5%.

In an announcement, it pledged to “keep the course in elevating rates of interest considerably at a gradual tempo” and, in unusually agency language, mentioned it supposed to hike by one other 50 foundation factors in March.

It follows 4 hikes in 2022 which introduced euro zone charges out of detrimental territory for the primary time since 2014.

ECB President Christine Lagarde struck a hawkish tone on the final assembly in December, stressing rates of interest would nonetheless must rise “considerably at a gradual tempo” to carry inflation to its 2% medium-term goal.

This led markets to cost in 50 foundation level hikes for February and March, with no fee cuts this 12 months.

Euro zone inflation fell for the third straight month in January, flash figures printed Wednesday confirmed, however headline inflation remained excessive at 8.5%. Core inflation, which excludes power and meals, was flat at 5.2%.

Consideration now turns to Thursday’s speech and press convention by Lagarde, which begins at 2:45 p.m. Frankfurt time, for a sign of the central financial institution’s newest outlook on the financial system and plans for mountaineering and quantitative tightening.

In December, it introduced that from March it could start to scale back its steadiness sheet by 15 billion euros ($15.9 billion) per thirty days on common till the top of the second quarter of 2023.

It is a breaking information story. Please examine again for updates.