European markets were higher on Friday, as investors reacted to a high rate standard From the European Central Bank and other comments from Federal Reserve Chair Jerome Powell.
The European Stoxx 600 Index is up 1.7% in afternoon trading, with all sectors trading in positive territory. Mining stocks rose 2.8% to lead gains, while banking stocks rose 2.5%.
On Thursday, the European Central Bank announced a 75 basis point rate hike, raising the deposit rate to 0.75%. The bank also revised its inflation forecast – to 8.1% on average in 2022 – and said it expects to raise interest rates again because “inflation remains very high and is likely to remain above target for a long time”.
Meanwhile, Federal Reserve Chairman Powell said Thursday that the US central bank will do so Raise rates to tackle inflation “until the job is done.”
“History is very wary of premature mitigation,” said Powell at the Cato Institute, a liberal think tank based in Washington, D.C. “I can assure you that my colleagues and I are deeply committed to this project and will continue to do so until the job is done.”
Meanwhile, world leaders Pay homage to Queen Elizabeth IIBritain’s longest-serving monarch died on Thursday at the age of 96.
The Bank of England said on Friday that it will postpone its September Monetary Policy Committee meeting by a week as the country enters a period of national mourning.
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