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The Most Important ECB Meeting Since The Draghi Era

Market Depth

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Introduction

The European Central Bank decided to play hard bow on monetary policy. The ECB foresees core inflation at 4.2% by December 2023. Despite the bunch of rate hikes, the ECB thinks that core inflation will be a double their target in a year from now. This is easily explained by thinking that every time a central bank wants to fight inflation they need to bring nominal rates above the level of core inflation.

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