Interest rates live: Euro slips against dollar after ECB raises key rate to 2.5%

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Following the European Central Bank decision on interest rates at 1:15pm London time, Christine Lagarde will meet the press at 1:45pm. Central bank watchers will be on the lookout for clues as to the governing council’s thinking.

Another half point in March?

The ECB is expected to raise rates by half a point not only on Thursday but also in March. That would take the deposit rate to 3 per cent, its highest level since October 2008. In Davos, Lagarde signalled that the ECB would “stay the course” on raising rates — a hint that more than one half-point rise was planned. Analysts will be watching for any hints on when the ECB president expects rates to peak, which most analysts believe will be in the summer.

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