NEW YORK: The euro dipped against the dollar on Thursday after the European Central Bank (ECB) hiked interest rates by a widely expected 50 basis points and offered no new hawkish surprises, while the Bank of England (BoE) adopted a more dovish tone on inflation.
The ECB penciled in at least one more hike of the same magnitude next month and said it will then evaluate the subsequent path of its monetary policy.
The BoE also raised rates by 50 basis points and signaled that the tide was turning in Britain’s battle against high inflation, forcing investors to dial down bets on a more aggressive tightening of policy.
“The ECB was more or less in line with expectations and the Bank of England sounded a bit more dovish, so I think that’s helping to slow the dollar’s decline,” said Joe Manimbo, senior market analyst at Convera in Washington.—Reuters
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