The 25bp rate hike was pretty much a done deal prior to the meeting. So, the main question we, markets, and reporters had for Lagarde today was: “What’s next?” The ECB president did not answer that question explicitly, but that was to be expected. On balance, the statement was neutral. The ECB’s new “robustness check” supports our call for a follow-up hike in September. Lagarde emphasised that this 25bp rate hike was robust across multiple scenarios. Her comments suggest that some further tightening may be forthcoming, but the ECB also doesn’t appear to be in a rush to follow up on today’s hike. President Lagarde ... (full story)