FX Focus - 14 September 2023

ECB signals that policy rates are moving towards a plateau

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ECB signals that policy rates are moving towards a plateau

  • ECB lifts deposit rate up to 4.00% but signals it could be peak although further hike not ruled out.
  • Focus is shifting to leaving rates at high level for long period.
  • Dovish market reaction as EUR weakens and euro-zone rates fall further out the curve

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