ECB hikes key rates by 75 basis points as expected

The European Central Bank (ECB) announced on Thursday that it raised its key rates by 75 basis points (bps) following the September policy meeting.

With this decision, the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will be increased to 1.25%, 1.5% and 0.75% respectively.

EUR/USD keeps the daily range after the ECB raised the interests rates by 75 bps, as widely expected. That said, the interest on the main refinancing operations, the interest rate on the marginal lending facility and the deposit facility are now at 1.25%, 1.50% and 0.75%, respectively.

The EUR/GBP cross retreats further from its highest level since mid-June touched earlier this Thursday and refreshes its daily low after the European Central Bank announced its policy decision. The downtick, however, lacks follow-through and spot prices, for now, seem to have stabilized around the 0.8670 area