18.01.2025

Weekly Market/September 12-September 16, 2022

 The European Central Bank (ECB) at its meeting on Thursday decided to raise interest rates by 75 basis points for the first time in its history, raising the main refinance rate by 1.25%, marginal lending facility by 1.50% and deposit rate by 1.50% by 0.75%. At a press conference following the decision, ECB President Lagarde indicated that while underlying inflation inputs were rising and price pressures were increasingly spreading across the sector, they could likely raise interest rates at more than two meetings. Fed Chairman Powell continues the strategy they are pursuing said they would continue to do the same without hesitation to contain inflation. Oil prices fell as concerns about a rising recession negatively affected the demand outlook, while the barrel of Brent oil dipped below $90 for the first time since February to $87.24. Global markets were mixed during the week, as concerns were raised that Russian gas company Gazprom halted gas flows to Europe earlier in the week and Powell‘s hawkish remarks negatively affected risk appetite.