After a period of high inflationary pressure, the European Central Bank (ECB) finally announced a rate cut on June 6, and this decision quickly became the focus of global financial markets. After the ECB announced the rate cut, both the euro/US dollar (EUR/USD) and the euro/British pound (EUR/GBP) rose.

Money markets indicate that the ECB rate will be (another) reduced by 59 basis points in 2024, compared with 64 basis points before the ECB statement.

ECB rate cut decision

Immediate market reaction

Euro exchange rate reaction

Stock market reaction

Bond market reaction

Analyst views