Dusseldorf Investors on the German stock market reacted positively to the European Central Bank’s key interest rate increase on Thursday afternoon in an initial reaction. The German stock index (Dax) is turning slightly back into positive territory and is trading 0.75 percent higher at 15,771, after temporarily falling to 15,588 points. The Eurozone leading index EuroStoxx 50 recently rose by a good 0.4 percent.
“Abandoning the rate hike, a pause, would simply have postponed rate hike expectations until the next meeting given the still high pace of inflation,” said Michael Heise, chief economist at HQ Trust. “Not much would have been gained.” Overall, with the tenth interest rate increase, the ECB leaves no doubt about its determination to combat inflation.
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