# ECB hikes rates, sees significant increases ahead as it announces plan to shrink balance sheet

> The ECB raised its key rate from 1.5% to 2% and said rates would need to rise significantly further. It also announced that from March 2023 it would reduce its balance sheet by 15 billion euros per month on average until the end of the second quarter.

- Date: 2022-12-15 · published 2022-12-15T12:00:00.000Z
- Category: macro · region Euro zone · magnitude medium
- Page: https://feedsoft.ai/events/38438-ecb-hikes-rates-sees-significant-increases-ahead-as-it-announces-plan-to-shrink
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

Higher euro-zone rates and balance sheet reduction support the euro and tighten financial conditions, which can slow economic activity and reduce feed demand from the region. The impact on grain prices is indirect.

## Read by commodity

- EURUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2022-12-15 | [ECB raises rates again, outlines balance sheet run off](https://feedsoft.ai/events/38435-ecb-raises-rates-again-outlines-balance-sheet-run-off.md) | -0.5% | +1.5% |
| EURUSD | 2023-02-22 | [Investors increase bets on ECB lifting rates to all-time high](https://feedsoft.ai/events/37539-investors-increase-bets-on-ecb-lifting-rates-to-all-time-high.md) | -0.5% | +1.1% |
| EURUSD | 2023-02-02 | [ECB hikes rates, promises another 50 bps more in March](https://feedsoft.ai/events/37535-ecb-hikes-rates-promises-another-50-bps-more-in-march.md) | -1.7% | -2.9% |
| EURUSD | 2023-02-02 | [ECB raises rates, signals at least one more hike](https://feedsoft.ai/events/37538-ecb-raises-rates-signals-at-least-one-more-hike.md) | -1.7% | -2.9% |
| EURUSD | 2020-06-04 | [Euro jumps as ECB increases stimulus - Business & Finance - Business Recorder](https://feedsoft.ai/events/52843-euro-jumps-as-ecb-increases-stimulus-business-and-finance-business-recorder.md) | +1.0% | +0.1% |

## Sources

- cnbc.com: https://www.cnbc.com/2022/12/15/ecb-hikes-rates-sees-significant-rises-ahead-as-it-announces-plan-to-shrink-balance-sheet.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.