The euro is rising after the ECB’s decision to raise interest rates by 50 bp.

LONDON, March 16 (Reuters) – The euro strengthens as eurozone bond yields are mixed on Thursday after the European Central Bank raised interest rates by 50 basis points, despite some investors predicting financial turmoil could keep the regulator from making so much movement.

The European Central Bank set the interest rate at 3.50% on Thursday, which was in line with the forecast of analysts polled by Reuters.

The reaction of the European currency was rather restrained: the euro rose 0.17% to USD 1.06 at 16:49 Moscow time.

Yields on European bonds did not change much compared to the levels before the decision. Yield of 2Y German bonds increased after the central bank’s decision by 11.8 bp to 2.503%, but then reversed and at 16:35 Moscow time it was already 2.377%.

The index of European banks fell to a minimum since January 2 within minutes of the decision; by 16:49 Moscow time, the index fell by almost 0.2%.

The pan-European STOXX 600 gained 0.07%, the German DAX 0.35% and the French CAC 0.68%.

The original message in English is available under the following code: (Joyce Alves, Reuters office in Gdańsk, translated by Tomasz Kanik)


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