Despite a less benign inflation outlook, the ECB kept its policy rates unchanged. In the policy statement, the ECB’s emphasises its determination to ensure that inflation stabilises at 2% over the medium term, and Lagarde indicated that the ECB has the agility to act quickly if necessary. Taking into account the latest developments in the Middle East, the ECB may hike in April to prevent the risk that high inflation becomes entrenched again. The ECB unanimously decided to leave the deposit rate at 2.00%. But Lagarde dropped some hawkish hints, suggesting that the ECB is readying a hike in April, or possibly June. In ... (full story)