They did it. As analysed here, the European Central Bank cut interest rates by 25bp, bringing the deposit rate down to 3.75%. This did not come as a surprise and was indeed one of the best-telegraphed moves in monetary policy history, so the main question was whether the ECB would give any forward guidance on what is next. The short answer is ‘they didn’t’. For the longer answer, continue reading our three takeaways. During the period of surging inflation, the ECB very often had to focus on actual data, which contradicted what a central bank should be doing, namely looking ahead. ECB President Lagarde stressed during ... (full story)