'Not a dovish Christmas carol' as ECB hikes rates by 50 basis points and warns of further rises

Although the ECB delivered a smaller rate rise than its previous two hikes, the tone from the bank has once again turned hawkish. ECB president Christine Lagard promised at least two more 0.5 percentage point rate increases in February and March. "Everyone who thinks this is a pivot is wrong. We are not pivoting, not wavering," she said.  The ECB raised its deposit rate from 1.5% to 2% and announced plans to start selling the €5trn worth of bonds it has acquired over the past eight years from March through June by €15bn per month.  ECB raises interest rates to highest level since 2...