European Central Bank (ECB) has taken a dovish tone following today’s 50 bps hike.
CNBC’s Steve Liesman discussed the ECB’s decision to hike rates by 50 bps, the differences between U.S.
and European inflation situations, and the dovish tone from the ECB.
Despite failing banks and lifelines being thrown everywhere, major central bank rate hikes have been implemented.
The probability of a 25 basis point hike by the Fed is now at 83 percent, with just a 17 percent chance of the Fed standing fat.
ECB President Christine Lagarde might have shown Fed Chair Jay Powell the way by implementing a dovish hike this morning, which included backing off promises of future hikes, insisting banks are in good shape, and emphasizing the difference between monetary policy tools and financial stability tools.
The inflation rate in the U.S.
is currently 6 percent and falling, while it remains flat at 8.5 percent in Europe.
Furthermore, the policy rate in the U.S.
is 4.63, compared to Europe’s 3 percent.